Nasdaq Hits Record High on Tech Gains and Rate Cut Hopes

U.S. equities closed higher on Friday, with the Nasdaq securing a record finish for the second consecutive session. Gains were driven largely by strength in technology names, particularly Apple, as investor sentiment brightened on prospects for interest rate cuts. All three major U.S. indexes delivered robust weekly performances, underscoring renewed market momentum.

Apple’s Stellar Performance Boosts Technology Sector

Apple shares surged 4.2% in Friday’s session, capping a remarkable 13.3% weekly advance — the company’s strongest weekly percentage gain since 2020. This rally significantly bolstered the S&P 500 technology and communication services sectors, both of which not only led Friday’s performance but also ended at record closing highs.

Corporate Earnings Continue to Influence Market Moves

Investor confidence was also reinforced by strong corporate updates. Gilead Sciences saw its stock jump 8.3% after raising its full-year financial guidance, contributing to the S&P 500’s upward trajectory. With over 450 companies in the index having reported results, second-quarter earnings growth estimates have improved sharply to 13.2%, compared to just 5.8% at the start of July.

Rate Cut Expectations Intensify on Softer Economic Data

Recent signs of economic moderation have strengthened the case for monetary easing. According to the CME FedWatch Tool, markets are now pricing an 89.4% probability of at least a 25-basis-point cut at the Federal Reserve’s September meeting, up from 80.3% a week earlier. Futures also point toward the likelihood of two rate cuts by the end of the year.

Index Performance Highlights a Broad Rally

The Dow Jones Industrial Average climbed 206.97 points, or 0.47%, to close at 44,175.61. The S&P 500 rose 49.45 points, or 0.78%, to 6,389.45, while the Nasdaq Composite added 207.32 points, or 0.98%, to finish at 21,450.02. The Nasdaq has now posted 18 record closes in 2025, gaining roughly 11% year-to-date, while the S&P 500 ended just shy of its own all-time high.

Weekly Gains Reflect Growing Market Optimism

For the week, the S&P 500 advanced 2.4%, the Dow added 1.3%, and the Nasdaq rallied 3.9%. The positive momentum reflects a combination of strong corporate earnings, resilience in growth sectors, and the market’s anticipation of a more accommodative Fed policy.

Market Breadth and Trading Activity

On the New York Stock Exchange, advancing issues outnumbered decliners by a 1.37-to-1 margin, with 272 stocks hitting new highs versus 88 reaching new lows. The Nasdaq saw a narrower lead for gainers, with a 1.13-to-1 ratio, as 2,442 stocks rose and 2,157 declined. Trading volume reached 16.18 billion shares across U.S. exchanges, slightly below the 20-day average of 18.27 billion shares.