12:21 PM EDT, 09/13/2024 (MT Newswires) -- US equity indexes rose while most government bond yields fell in midday trading Friday after bets in favor of a 50 basis-point cut in interest rates next week moved sharply higher.

The S&P 500 index rose 0.6% to 5,628.7, with the Nasdaq Composite up 0.6% to 17,678.4 and the Dow Jones Industrial Average 0.9% higher at 41,476.2. All sectors rose intraday, with materials and industrials leading the top gainers.

The Federal Reserve's monetary policy announcement is due Sept. 18. The probability of a 50 basis point cut in rates surged to 43% after midday Friday from 13% on Thursday afternoon, according to the CME Group's FedWatch Tool. The remaining 57% likelihood was for a 25 basis point cut, down from 87% over the same comparable period.

Speaking in a forum in Singapore, former New York Fed President Bill Dudley said that "there's a strong case for 50," Reuters reported. Analysts from Deutsche Bank noted news reports in publications such as The Wall Street Journal and the Financial Times highlighted the possibility of a 50 basis point cut, prompting traders to adjust expectations, a note from FXEmpire said.

Most Treasury yields fell intraday, with the 10-year yield down 2.5 basis points to 3.66%, and the two-year rate was 5.9 basis points lower at 3.59%.

Meanwhile, in economic news Friday, the University of Michigan's preliminary consumer sentiment index rose to 69 in September from 67.9 in August, above the expectations for an increase to 68.5 in a survey compiled by Bloomberg. Michigan said that this is the highest consumer sentiment reading since May 2024.

West Texas Intermediate crude oil rose 0.6% to $69.35 a barrel.

In company news, Adobe (ADBE) shares sank past 9% amid heavy trading volume after the firm's Q4 revenue outlook missed market expectations. After the results late Thursday, Fubon downgraded Adobe to neutral with a price target of $610. Citigroup lowered its price target to $616 from $621 and Bernstein to $644 from $660.