Indexes Close Higher
U.S. stocks climbed on Friday, marking weekly gains across major indexes after the Federal Reserve’s rate cut boosted investor sentiment. The Dow Jones Industrial Average rose 172.85 points, or 0.37%, to 46,315.27, setting a new record. The S&P 500 gained 0.49% to 6,664.36, while the Nasdaq Composite advanced 0.72% to 22,631.48. The Russell 2000 fell 0.7% but still managed its seventh consecutive weekly advance.
Market Leaders
Apple shares jumped 3.2% as the company’s latest iPhone launched globally, leading gains in the tech sector. Tesla stock also climbed 2.2%. For the week, the Nasdaq rose 2.2%, the S&P 500 gained 1.2%, and the Dow added 1%. The Russell 2000 also gained 2.2% despite Friday’s dip.
Impact of Fed Decision
The Federal Reserve cut its benchmark rate by a quarter percentage point, its first reduction since December. While widely anticipated, the move sparked volatility as Fed Chair Jerome Powell described it as a “risk management cut.” The adjustment lowered the Fed’s short-term rate to around 4.1%, down from 4.3%.
Market Outlook
Despite September’s reputation for market pullbacks, equities have climbed 35% since March, supported by strong fundamentals and technical momentum. “With the S&P 500 trading at 22 times forward earnings and volatility low, some consolidation would be a normal and healthy development,” said Mark Hackett, chief market strategist at Nationwide.
