Tech Surge Lifts Nasdaq to Fifth Record as Fed Rate Cut Bets Intensify

 

Wall Street closed Friday on a mixed note, with the Nasdaq Composite climbing 0.5% to secure its fifth consecutive record high, fueled by gains in tech heavyweights and renewed optimism around artificial intelligence. Tesla shares hit a seven-month peak, helping push the index above 22,149.

In contrast, the Dow Jones Industrial Average fell 0.6% after Thursday’s milestone close above 46,000, while the S&P 500 slipped just below the flat line. Despite the Dow’s drop, it still posted its first weekly gain in three weeks, up nearly 1%, while the Nasdaq and S&P 500 logged their best weekly performances since early August.

Investors are positioning ahead of next week’s Federal Reserve meeting, with futures markets pricing in a 90% probability of a quarter-point rate cut and strong odds of multiple cuts before year-end. The shift in sentiment follows a string of economic reports showing labor market weakness — just over 20,000 jobs added last month and jobless claims at a near four-year high — alongside stubborn inflation pressures.

Consumer sentiment also dipped in September, with long-term inflation expectations rising to 3.9% amid concerns over the impact of tariffs. Still, traders appear confident that the Fed will prioritize supporting growth, setting the stage for a potentially market-moving week ahead.