US market today: Dow, S&P 500, Nasdaq hit records after $15 trillion rally, Russell 2000 outperforms; Trump signals progress on US-China trade deal
Wall Street was on course to close another record-setting week on Friday adding $15 trillion in value, buoyed by optimism that the Federal Reserve will continue to ease interest rates to support the economy.By early afternoon, the S&P 500 was up 0.3%, the Dow Jones Industrial Average gained 129 points or 0.3%, and the Nasdaq Composite advanced 0.5%. The Russell 2000 index of small-cap stocks also broke past its previous record from 2021, AP reported.The rally has been fuelled by expectations of further rate cuts after the Fed lowered interest rates for the first time this year on Wednesday. Investors hope easier borrowing conditions will cushion the economy amid slowing job growth and persistent inflation pressures.Corporate action also lent support. FedEx rose 3.2% after reporting stronger-than-expected revenue and profit, helped by its domestic package business. Gold miner Newmont climbed 4.1% after selling its stake in Canada’s Orla Mining for $439 million, extending a stellar year in which its stock has more than doubled as gold prices hit record highs.Gold prices have benefited from the prospect of lower rates, high inflation, and concerns that mounting US and global debt could undermine currency values.Among laggards, homebuilder Lennar dropped 3.9% after posting weaker revenue despite stronger profits. Executive Chairman Stuart Miller cited “the continued pressures of today’s housing market” and said the company had to offer bigger incentives to lure buyers, which weighed on average sales prices.Analysts said easier interest rates could revive housing demand, with mortgage rates already falling in anticipation of the Fed’s rate-cutting campaign. However, they cautioned that the rally in equities may be vulnerable if the Fed does not cut rates as aggressively as markets expect.Fed Chair Jerome Powell this week described the central bank’s task as “precarious,” warning that while inflation remains stubbornly high, the job market is losing steam. President Donald Trump’s tariffs, which risk pushing prices higher in the short term, have added further uncertainty.Scott Wren, senior global market strategist at Wells Fargo Investment Institute, noted that equities could face turbulence as “the economy slows, tariff impacts arrive piecemeal and political uncertainties continue.”Overseas, European markets were mixed while Asia ended on a subdued note. Japan’s Nikkei 225 fell 0.6% after the Bank of Japan said it would sell part of its large stock fund holdings while keeping rates steady. Chinese indices closed mixed ahead of a phone call between Trump and Chinese President Xi Jinping, which Trump later described as “productive.” The two leaders agreed to meet at a regional summit in South Korea at the end of October.In the bond market, Treasury yields were stable. The 10-year yield edged up to 4.13% from 4.11% late Thursday.
