Home builder stocks surged on Friday, with the iShares U.S. Home Construction ETF and State Street SPDR S&P Homebuilders ETF up 5.7% and 5.4% respectively. This was their best day since July, driven by expectations of a Federal Reserve interest rate cut. Despite a tough year for the industry due to high rates and prices, both ETFs showed strong gains. The iShares ETF is down 4.2% for the year, while the State Street fund is up 0.3%. The housing market may be cooling, but builder stocks are heating up.

Read more at Dow Jones & Company: Home Builders Jump on Fed Rate Cut Expectations