US Stock Market Closes Mixed
The US stock market closed mixed on Friday, with the Dow Jones Industrial Average falling 273 points, or 0.6%, to 45,834, and the S&P 500 slipping 0.1% after touching a record intraday high of 6,594.67. The Nasdaq Composite, on the other hand, gained 0.5%, extending its record streak.
Market Performance
Despite Friday’s pullback, both the S&P and Nasdaq locked in fresh weekly highs, marking a two-week winning run. For the week, the S&P 500 advanced 1.4%, the Nasdaq climbed 2.1%, and the Dow added 1.2%, marking the S&P’s best streak since early August and ending the Dow’s two-week losing run. Thursday’s rally had already pushed all three major indexes to record closes, with the Dow topping 46,000 for the first time.
Individual Stock Performance
Tesla surged 5.4% to $388.73, its strongest gain in weeks, extending momentum from AI-related optimism in the auto space. Apple gained 1.8% to $234.16, while Microsoft rose 2% to $511.07, both benefiting from strong demand for cloud and AI exposure. Nvidia added 0.42% to $177.92, holding firm as one of the top beneficiaries of the AI investment boom. Oracle slipped 0.05% to $293.35, though the stock remains near record highs after posting upbeat earnings.
Macro Backdrop
Markets are now fully focused on the Fed’s September 17 policy meeting, with futures pricing in more than a 90% chance of a 25-basis-point cut, according to CME Group. Some investors are betting on an even larger 50-basis-point move, while Morgan Stanley forecasts four consecutive quarter-point cuts through January, bringing rates down to 3.5%. Analysts say the central bank is unlikely to surprise investors at this stage, especially with inflation moderating and jobless claims ticking higher.
Consumer Sentiment
Yet cracks are visible in consumer sentiment. The University of Michigan’s September survey fell to 55.4, its weakest reading since May, well below expectations. Inflation expectations for the next five years also edged up to 3.9%, underscoring that households remain uneasy about the economy despite Wall Street’s record highs.
Commodities Market
Oil prices advanced after the UK imposed new sanctions on Russian crude shipments and defense suppliers, sparking concerns of tighter supply. Gold stayed above $3,690 an ounce, on pace for a record-high settlement, reflecting safe-haven demand as inflation worries resurface.
Conclusion
The US stock market is at a crossroads, with investors waiting for the Fed’s rate cut decision. If the central bank confirms further cuts, Wall Street could see another leg higher. However, if not, higher yields and fragile consumer confidence may start to weigh more heavily. The path forward hinges on how aggressively the central bank signals easing through 2025. As the market awaits the Fed’s decision, investors are positioning themselves for the next move, with some betting on a larger rate cut and others preparing for a potential downturn.
