Stocks rose on Friday, with the S&P 500 and the Nasdaq Composite posting their strongest week of 2024 ahead of the upcoming Federal Reserve meeting.

The S&P 500 climbed 0.54% and closed at 5,626.02, less than 1% from its July all-time high. The tech-heavy Nasdaq Composite added 0.65% to end at 17,683.98. Both indexes posted their fifth consecutive winning day. The Dow Jones Industrial Average jumped 297.01 points, or 0.72%, closing at 41,393.78.

Utilities, communications services and industrials led the market higher on Friday, with each sector adding roughly 1%.

Investors also continued to rake up shares of megacap tech and semiconductor names, which helped drive this week's rebound rally after tech's recent underperformance. Powerhouse chipmakers Super Micro Computer and Arm Holdings added 3.4% and 5.9%, respectively. Alphabet advanced 1.8% and Uber jumped more than 6%.

"Investors are on guard for further bouts of volatility, particularly given the expectations surrounding the Fed meeting," said Quincy Krosby, chief global strategist for LPL Financial. She noted that based on historical patterns, stocks typically have their roughest performance of the year during the second half of September.

On a weekly basis, the S&P 500 rose 4% and the Nasdaq Composite gained 5.9%, the best week this year for both indexes. The Dow has advanced 2.6% during the period.

Wall Street is now looking ahead toward the Fed's policy meeting on Sept. 17-18, where the central bank is largely anticipated to lower interest rates by 25 basis points. Currently, the Fed's target rate is sitting at 5.25% to 5.5%.

Economic data reflecting a moderation in inflation also seemed to support the case for a rate cut. The consumer price index in August came in at 2.5% on annualized basis, the lowest level since February 2021. Wholesale prices, meanwhile, rose 0.2% in August, coming in line with expectations.