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Gap surges after raising annual sales forecast

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Intuit drops after forecasting Q2 results below estimates

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Small caps touch over one-week high

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Three major indexes post weekly gains

(Updates as of the close)

By Abigail Summerville and Johann M Cherian

Nov 22 (Reuters) -

Wall Street closed higher on Friday, with all three major

indexes posting weekly gains, as investors took comfort from

data pointing to robust economic activity in the world's biggest

economy.

A measure of business activity raced to a 31-month high in

November, boosted by hopes for lower interest rates and more

business-friendly policies from President-elect Donald Trump's

administration next year.

The domestically focused small-cap Russell 2000 index

rose and outperformed large-cap indexes. The index hit its

highest in more than a week and was set for weekly advances.

Meanwhile, Alphabet fell following Thursday's 4%

drop, as the U.S. Department of Justice argued to a judge the

company was monopolizing online search.

AI bellwether Nvidia ( NVDA ) also slipped in choppy trading

following its quarterly forecast on Wednesday.

An index tracking S&P 500 value stocks rose as

investors rotated out of their growth peers.

"I've been looking for this leadership change to go from

technology to everything else. I think we may be in the midst of

that shift. Small caps are acting much better, values are acting

better," said Mark Hackett, Chief of Investment Research at

Nationwide.

According to preliminary data, the S&P 500

gained 19.55 points, or 0.33%, to end at 5,968.26 points,

while the Nasdaq Composite gained 26.45 points, or

0.14%, to 18,998.87. The Dow Jones Industrial Average

rose 423.28 points, or 0.96%, to 44,293.63.

The S&P and the Dow reached one-week highs.

Expectations on the Federal Reserve's policy move in

December have recently swayed between a pause and a cut, as

investors weighed the likely impact of Trump's plans on price

pressures.

There is a 59.6% probability the central bank will lower

borrowing costs by 25 basis points, as per the CME Group's

FedWatch Tool.

Geopolitics were top of mind this week as investors

monitored a missile exchange between Ukraine and Russia, after

Moscow lowered its threshold for a nuclear retaliation. The

markets are also awaiting Trump's Treasury Secretary pick.

"The fact that we've been calm on a nice, steady stair step

pattern higher is very encouraging and reflective of the fact

that investors aren't acting with the emotion that they could be

given the amount of uncertainties we've faced," Hackett said.

In company news, Gap Inc ( GAP ) jumped after the Old Navy

parent raised its annual sales forecast and said the holiday

season was off to a "strong start".

Intuit fell after the TurboTax parent projected

second-quarter revenue and profit below Wall Street estimates on

Thursday.