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US stocks edged higher on Friday, with the NASDAQ Composite reaching another intraday record as optimism over lower interest rates and corporate results lifted sentiment. However, overall gains remained modest amid light trading activity and sector divergences.
The NASDAQ Composite climbed 56.08 points, or 0.3%, to 22,526.81 by midday, while the S&P 500 gained 5.41 points, or 0.1%, to 6,637.37. The Dow Jones Industrial Average rose 24.29 points, or 0.1%, to 46,166.71. All three major indexes remain near record highs following a strong rally earlier in the week.
The gains followed the Federal Reserve’s decision on Wednesday to cut interest rates by a quarter percentage point. Policymakers also signaled two additional rate reductions by year-end, sparking renewed enthusiasm for equities.
Minneapolis Fed President Neel Kashkari reinforced expectations on Friday, saying further quarter-point cuts would be appropriate. San Francisco Fed President Mary Daly was scheduled to speak later in the day.
While September is historically the weakest month for US equities, the benchmark indexes have trended higher this month, supported by easing monetary policy and improving sentiment around technology shares.
FedEx rose 2.7% after reporting quarterly profit and revenue above Wall Street forecasts. The company credited aggressive cost-cutting and resilient domestic deliveries for offsetting weaker international demand. Analysts viewed the results as a positive sign for the transport sector, which is often seen as a bellwether for global trade.
Apple added 2% after JP Morgan raised its price target on the stock, while Tesla advanced 1.8% following an upgrade by Baird to “outperform.” Their gains supported the S&P 500 technology and consumer discretionary sectors, which rose 0.3% and 0.5% respectively, making them the only sectors in positive territory.
In contrast, energy shares fell 1.4% alongside a pullback in crude oil prices, while airline stocks dropped 1.6% as investors worried about rising costs and muted travel demand. Semiconductor stocks also retreated, with the Philadelphia Semiconductor Index sliding 1.2% after Thursday’s rally. Gold stocks outperformed, climbing 2.7% as bullion prices advanced.
Overseas markets delivered mixed results. Japan’s Nikkei 225 fell 0.6% and China’s Shanghai Composite slipped 0.3%, while Australia’s S&P/ASX 200 gained 0.3%. In Europe, the French CAC 40 rose 0.3%, Germany’s DAX dipped 0.1%, and the UK’s FTSE 100 was flat.
Traders also monitored a phone call between President Donald Trump and Chinese President Xi Jinping, where both leaders reported progress on a deal involving TikTok’s US operations. The two agreed to meet in person at an upcoming summit in South Korea.
In the bond market, Treasury yields continued to climb. The benchmark 10-year note yield rose 3.1 basis points to 4.135%, reflecting ongoing pressure after the Fed’s policy shift.
Also Read: US Stock Market Today: S&P 500 slips 0.1%, NASDAQ falls 0.2%, Apple dips 0.8%, Meta rises 1.2%
