Stocks sensitive to interest rates have rallied as investors bet the Federal Reserve could resume cutting rates, with homebuilders and small caps leading the gains, according to MarketWatch. The iShares U.S. Home Construction ETF gained 5.6% last week. Shares of D.R. Horton and Lennar surged 5.8% and 9.2%, respectively, after Berkshire Hathaway disclosed new stakes. Investors are watching closely for Fed Chair Jerome Powell’s Jackson Hole speech on August 22, with speculation centering on whether the central bank will cut rates in September. Broader U.S. markets also posted weekly gains, with the Dow up 1.7%, the S&P 500 up 0.9%, and the Nasdaq up 0.8%.
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