The Dow jumped more than 400 points on Friday — near its all-time high — as investors reevaluated the prospect of a potential pullback. Big cut in interest rates by the Federal Reserve Next week.
In recent trading, the Dow Jones Industrial Average rose 379 points, or 0.9%, to 41,476. On Aug. 30, it closed at a record 41,563.08.
The S&P 500 gained 0.6%, and the Nasdaq also added 0.6%. Both are on a five-day winning streak.
Traders' expectations for a 50 basis point rate cut rose overnight, now standing at 47%, up from 14% on Thursday. CME's FedWatch Tool Showed.
Former New York Fed President Bill Dudley said there was a strong case for a 50-bps interest rate cut. Separate media reports called the decision “a close call”, adding to the uncertainty.
“Some articles were published in the Wall Street Journal and the Financial Times suggesting a 50-bps move was still in the works, prompting markets to re-evaluate their expectations once again,” Deutsche Bank analysts said.
On Thursday, the chances of the Fed sticking to a smaller 25 basis point rate cut had become slightly stronger. high producer value The report came after August consumer prices data.
“Markets want the FOMC to provide relief as quickly as possible and move to fight recession risk. This meeting is a risky event and it will remain risky despite 25 or 50 basis points of relief next week,” said Bob Savage, head of market strategy and insights at BNY Mellon.
All major US benchmarks closed higher in the previous session, with a rally in megacap stocks helping them stay on track for weekly gains.
Meanwhile, the University of Michigan's preliminary consumer sentiment index for September came in at 69, while analysts had expected 68.5.
Among individual transferees, Boeing accounted for 2.6% of its West Coast factory workers quit his job and went away A contract deal was rejected by an overwhelming majority in the early hours of Friday.
Adobe declined 9% after it forecast fourth-quarter earnings that fell below analysts' estimates, while cloud computing company Oracle jumped 2.7% after it raised its fiscal 2026 revenue outlook.
Chinese e-commerce company PDD Holdings fell 2.4% after the Biden administration said it was taking steps to curb low-value shipments entering the US duty-free under the $800 “de minimis” limit.
Uber gained 5.7% after the ride-hailing platform said it would launch autonomous ride-hailing services in Austin, Texas, and Atlanta in partnership with Alphabet's Waymo.
