Nasdaq Hits 5th Record High as Dow, S&P 500 Falter
The broader market showed signs of weakness ahead of an anticipated Federal Reserve interest rate cut next week, ending the S&P 500's winning streak.
The Nasdaq Composite extended its winning streak to a fifth day, closing at another record high on Friday, even as the broader market showed signs of fatigue. The S&P 500 snapped its own winning streak with a slight dip, while the Dow Jones Industrial Average posted a more significant decline, highlighting a growing divergence in market sentiment ahead of a pivotal Federal Reserve meeting.
The tech-heavy Nasdaq climbed 0.4% to finish the session at 22,141.10, fueled by continued momentum in large-cap technology stocks. In contrast, the S&P 500 edged down 0.1%, and the Dow fell 0.6% after crossing the 46,000 mark for the first time just a day earlier. Despite the daily declines, , securing gains for the week as investors positioned for a widely expected policy shift from the central bank.
Market participants are almost certain that the Federal Reserve will announce its first interest rate cut of the year next week. The of a 25-basis-point reduction, as policymakers react to a shifting economic landscape. This confidence is underpinned by and moderating inflation. While consumer price data met expectations, a surprise drop in wholesale prices and a rise in the unemployment rate have given the Fed more room to ease monetary policy. All eyes will now be on the Federal Open Market Committee's (FOMC) announcement next week for confirmation and guidance on future policy.