Nasdaq notches record high close, traders look to Fed meeting

The Nasdaq notched a record high close on Friday in a mixed trading session, lifted by Microsoft as investors looked ahead to the Federal Reserve’s policy meeting next week, when it is widely expected to cut interest rates to counter a slowdown in the jobs market.

Fueled by Tesla and other technology-related stocks, the Nasdaq added to a rally in the previous session that saw all three indexes hit all-time highs.

Investors are laser-focused on the Fed’s meeting on Tuesday and Wednesday. Traders expect the central bank to cut interest rates by 25 basis points after recent data showed longstanding weakness in hiring and easing inflation concerns.

“Because we had such a nice jump in the stock market yesterday, investors are basically catching their breath,” said Sam Stovall, chief investment strategist CFRA Research. “There’s really not going to be any data between now and Wednesday. It’s a sort of wait-and-see attitude.”

Microsoft gained 1.8% after the technology giant avoided a possible hefty EU antitrust fine by offering customers reduced prices for Office products excluding Teams.

Tesla jumped 7.4% after board chair Robyn Denholm dismissed concerns that CEO Elon Musk’s political activity had hurt sales at the electric-vehicle maker and said the billionaire was “front and center” at the company after several months at the White House. With Friday’s surge, Tesla shares remain down 2% in 2025.

Declines in Goldman Sachs and paint-maker Sherwin-Williams kept the Dow Jones Industrial Average in negative territory. The S&P 500 declined marginally.

The University of Michigan’s survey showed US consumer sentiment fell for a second straight month in September as consumers saw rising risks to business conditions, the labor market and inflation.

The S&P 500 declined 0.05% to end the session at 6,584.29 points.

The Nasdaq gained 0.45% to 22,141.10 points, while the Dow Jones Industrial Average declined 0.59% to 45,834.22 points.

Seven of the 11 S&P 500 sector indexes declined, led lower by health care, down 1.13%, followed by a 0.97% loss in materials.

Following signs of a worsening jobs market, interest rate futures reflect expectations of cuts totaling 75 basis points by the end of the year.

For the week, the S&P 500 rose 1.6%, the Dow climbed almost 1% and the Nasdaq added 2%, helped by a revival in artificial intelligence trade after cloud computing giant Oracle’s strong forecast on Tuesday.

Warner Bros Discovery jumped 17%, extending a surge from Wednesday, when a source said Paramount Skydance was preparing a bid for the struggling media company.

Shares of vaccine makers fell after a report said US health officials are planning to link coronavirus vaccines to the deaths of 25 children. Moderna declined 7.4%, while Pfizer and Novavax both lost more than 3%.

Declining stocks outnumbered rising ones within the S&P 500 by a 3.3-to-one ratio.

The S&P 500 posted 22 new highs and 3 new lows; the Nasdaq recorded 106 new highs and 43 new lows.

(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru and by Noel Randewich in San Francisco; Editing by Maju Samuel)

Wall St Week Ahead: Investors seek Fed’s view of shaky labor market as rate cut looms

NEW YORK – Investors will look for the Federal Reserve to communicate how worried it is about the flagging US labor market at its meeting next week, and they expect the central bank to cut interest rates for the first time in nine months to shore up employment.

On Thursday, inflation data came in slightly hotter than expected. Still, market players did not expect this would dissuade the Fed from easing rates on Wednesday, following several downbeat reports about US job growth.

More in doubt was the size of next week’s cut and how much the Fed expects to decrease rates in the coming months.

With some recent stability in trade and fiscal policy, “the Fed has moved back onto the front burner for investors going forward,” said Chris Fasciano, chief market strategist at Commonwealth Financial Network.

“Now that the labor market is weakening, the Fed becomes the dominant story for investors as to how they address that,” Fasciano said.

Expectations that the Fed will reduce interest rates have helped lift the major US stock indexes to record highs, along with excitement over the potential of artificial intelligence, strong corporate earnings, and calming fears about the economic fallout from President Donald Trump’s tariffs. The benchmark S&P 500 is up 12% so far in 2025.

As of Thursday, Fed fund futures indicated that markets were expecting a 90% chance that the Fed would lower rates by 25 basis points in next Wednesday’s policy decision, according to LSEG data. The balance of expectations left about a 10% chance for a larger-than-standard 50 bp cut.

Of the 55 rate reductions in the fed funds rate since 1990, 60% of those have been 25 basis point cuts, according to Nicholas Colas, co-founder of DataTrek Research.

Of the 18 times the Fed has cut by 50 bps, all but one occurred during or just after recessions, Colas said in a research note. The one exception was in September 2024, which was the first of three cuts totaling 100 basis points last year, resulting in the current rate of 4.25%-4.5%.

“Based on this history, which both the Fed and markets know, a 50 basis point cut would signal that the (Fed) is worried about the near future of the US economy,” Colas said in the note.

As it stands, Fed fund futures were baking in expectations of 73 basis points of easing by December or nearly three standard cuts. The central bank on Wednesday will give its latest summary of economic projections, updating its view of the economy and monetary policy.

As the Fed has held steady on rates so far in 2025, Chair Jerome Powell and other Fed officials have expressed wariness about Trump’s import tariffs possibly leading to higher inflation as a reason for forestalling rate cuts. Data on Thursday showed the consumer price index rose 2.9% on an annual basis in August, including the biggest monthly rise since January.

While the Fed has a dual mandate to ensure stable prices and maximum employment, investors will want to hear that the central bank is primarily focused on supporting the labor market, said Yung-Yu Ma, chief investment strategist at PNC Financial Services Group. After back-to-back weak monthly US employment reports, a government revision this week showed the economy likely created 911,000 fewer jobs in the 12 months through March than previously estimated.

“Those job revisions are just so extraordinary that they demand attention,” Ma said. Markets want to hear that “there’s a clear and pervasive shift to making sure that that weakness doesn’t become worse.”

Wall Street will also focus on technology shares and the AI trade after Wednesday’s 36% surge in shares of Oracle pushed the company’s market value close to USD 1 trillion. The enterprise software maker’s stunning stock gains were fueled by a wave of multi-billion-dollar cloud deals, showing the scramble for computing power in the AI race.

The Oracle stock surge was “stunning from a market dynamic standpoint that such a large company would see a market reaction of that magnitude,” PNC’s Ma said. “It illustrates the economy and technology, and about AI, that these developments are taking place very fast.”

(Reporting by Lewis Krauskopf; Editing by Alden Bentley and David Gregorio)

Dollar on back foot as jobless claims firm up Fed rate cut views

SINGAPORE – The dollar remained under pressure on Friday as a surge in US jobless claims and a modest tick up in inflation kept investors zeroed in on likely Federal Reserve interest rate cuts next week and beyond.

The dollar index was last trading at 97.585, having snapped a two-day winning streak on Thursday and on track to record its second consecutive weekly decline.

On Thursday, data showed the biggest weekly increase in the number of Americans filing new applications for jobless benefits in four years.

That overshadowed US consumer inflation data for August, which showed prices rising at the fastest pace in seven months but still modest and broadly in line with expectations.

While the mixed data might add some wrinkles to the Fed’s policy deliberations next week, investor focus is mostly centered on rate cut prospects for now.

“We’re quite betwixt and between, and the outlook is quite murky,” said Tim Kelleher, head of institutional FX Sales at Commonwealth Bank in Auckland. “The market is at a crossroads.”

The yield on benchmark 10-year Treasury notes edged up to 4.0282% compared with its US close of 4.011%, after a decline in yields that came close to crossing the 4% mark for the first time since April. Pricing of Fed fund futures indicates that the market believes the Fed is certain to cut its key interest rate by 25 basis points (bps) on September 17 as labor market softness overshadows inflation risks.

However, traders are reining in bets on a jumbo 50 bps rate cut next month, with pricing implying a shallower path of easing before the end of the year than anticipated earlier, according to the CME Group’s FedWatch tool.

Against the yen, the dollar was trading flat at 147.27 yen, little changed after the US and Japanese governments issued a joint statement on Friday, which reaffirmed that exchange rates should be “market determined” and that excess volatility and disorderly moves in exchange rates were undesirable.

The euro stood at USD 1.1727, depreciating 0.1% so far in Asia as traders curbed their bets on another European Central Bank rate cut this cycle, now seeing another move as a coin toss, after the bank sounded sanguine about the economic outlook.

Euro zone rate setters kept their key interest rate on hold at 2% for a second straight meeting, with ECB chief Christine Lagarde saying that the bank remains in a “good place” and said risks to the economy had become more balanced than before.

The Australian dollar was last trading 0.1% firmer at USD 0.6665, holding steady near a 10-month high, while the kiwi slipped 0.1% to USD 0.5971.

Sterling traded at USD 1.3572, slipping 0.1%, while the offshore yuan was last at 7.1135 yuan per dollar, trading flat.

(Reporting by Gregor Stuart Hunter; Editing by Sam Holmes)

Gold set for fourth weekly rise as US data lifts rate-cut hopes

Gold prices rose on Friday and were headed for a fourth consecutive weekly gain, as fears of a weakening US labor market eclipsed inflation concerns ahead of an expected Federal Reserve rate cut next week.

FUNDAMENTALS

* Spot gold rose 0.1% to USD 3,637.06 per ounce as of 0059 GMT. Bullion gained 1.4% so far this week.

* US gold futures for December delivery were steady at USD 3,674.20.

* US consumer prices rose 0.4% in August, the steepest monthly rise in seven months, driven by higher housing and food costs, while data on Wednesday showed an unexpected decline in US producer prices in August.

* Weekly jobless claims surged last week, underscoring a material softening in labour market conditions after the US government said nonfarm payrolls may have been overstated by 911,000 jobs in the 12 months through March.

* This followed Friday’s employment report, which showed job growth nearly stalled in August.

* The Fed is expected to lower its key interest rate by 25 basis points on September 17 as labour market softness overshadows inflation risks, said almost all 107 economists in a Reuters poll, with most expecting another cut next quarter.

* US 10-year Treasury yields hovered near 4-month lows, while the US dollar index was headed for a weekly decline.

* Greenback-priced bullion, which hit a record high of USD 3,673.95 on Tuesday, is often considered a hedge against inflation and uncertainties and tends to perform well in a low-interest-rate environment.

* Meanwhile, US President Donald Trump’s administration on Thursday asked a federal appeals court to allow Trump to remove Fed Governor Lisa Cook from office for now after a judge said he likely lacked cause to do so.

* Elsewhere, spot silver fell 0.2% to USD 41.48 per ounce, platinum steadied at USD 1,378.40 and palladium held ground at USD 1,188.34. All three metals were set for a weekly rise.

DATA/EVENTS (GMT)
0600	Germany HICP Final YY August
0600	UK GDP Est 3M/3M July
0600	UK GDP Estimate MM, YY July
0600	UK Services MM, YY July
0600	UK Manufacturing Output MM July
0645	France CPI (EU Norm) Final MM, YY August
0645	France CPI MM, YY NSA August
1400	US U Mich Sentiment Prelim September

(Reporting by Anmol Choubey in Bengaluru; Editing by Sumana Nandy)

Wall Street indexes post record-high closes; Tesla and Micron rally

Wall Street’s main indexes notched record-high closes on Thursday following gains in Tesla and Micron Technology, while US inflation and jobless data fueled expectations that the Federal Reserve will cut interest rates this month.

US consumer prices rose more than expected in August and the annual increase in inflation was the largest in seven months.

In a separate reading, initial jobless claims for the week ended September 6 stood at 263,000, at a near four-year high.

“Inflation has been sticky … Whether we would call it stagflation or not, people have different definitions of it. But certainly we are in a period that is unusual relative to the last several years, as the job market is slowing down considerably while inflation does not follow suit,” said Atsi Sheth, Chief Credit Officer at Moody’s Ratings in New York.

Sheth predicted the Fed will reduce interest rates by 25 basis points next week, and another 25 basis points by year-end.

Futures trading indicates traders are certain the Fed will cut rates by at least 25 basis points at its policy meeting next week, with about a 7% chance of a deeper 50 basis point cut.

That follows a series of bleak labor market datasets and Wednesday’s cooler-than-expected producer inflation reading.

Tesla climbed 6% and helped the S&P 500 and Nasdaq hit record highs.

The Dow Jones Industrial Average closed at a record high, with gains of more than 1% in JPMorgan, and Goldman Sachs Group.

Micron Technology jumped 7.5% to USD 150.55 after Citigroup raised its price target on the memory chipmaker to USD 175 from USD 150. The Philadelphia SE Semiconductor Index rose 0.9%, also hitting an all-time high.

Warner Bros Discovery surged 29% after the Wall Street Journal reported that Paramount Skydance is preparing a majority cash bid for the struggling media company.

The S&P 500 climbed 0.85% to end the session at 6,587.47 points.

The Nasdaq gained 0.72% to 22,043.08 points, while the Dow rose 1.36% to 46,108.00 points.

Ten of the 11 S&P 500 sector indexes rose, led by materials, up 2.14%, followed by a 1.73% gain in health care.

Centene jumped 9% after the health insurer reaffirmed its annual profit forecast and said quality ratings for its Medicare plans were in line with expectations.

Oracle receded 6.2%, giving back some of the prior session’s 36% surge, which had added new fuel to Wall Street’s AI rally.

Delta Airlines fell 1.55% after the carrier reaffirmed its annual profit forecast.

Advancing issues outnumbered falling ones within the S&P 500 by a 6.8-to-one ratio.

The S&P 500 posted 42 new highs and 4 new lows; the Nasdaq recorded 143 new highs and 42 new lows.

Volume on US exchanges was heavy, with 18.2 billion shares traded, compared to an average of 16.1 billion shares over the previous 20 sessions.

(Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru, and by Noel Randewich in San Francisco; Editing by Pooja Desai and Maju Samuel. Additional reporting by Davide Barbuscia in New York; Editing by David Gregorio)

Dollar steady as inflation data and central banks take focus

SINGAPORE – The dollar stabilised in early Asian trading hours on Thursday after an unexpected drop in US factory-gate prices bolstered expectations the Federal Reserve will cut rates next week, and traders awaited US consumer price data due later in the day.

The dollar index nudged upwards to 97.822, rising for a third consecutive day after the Producer Price Index for final demand fell 0.1% during August, the Labor Department’s Bureau of Labor Statistics said on Wednesday. The decline followed a 0.7% jump in July, which was also revised downwards.

“The market has positioned for the Fed to ease in September and potentially ease three times this year,” said Rodrigo Catril, currency strategist at National Australia Bank in Sydney. “The benign outcome from the PPI tells you pricing expectations look about right.”

Markets are trading on expectations that the prospect of the Fed easing is a certainty and the only remaining question is by how much. Traders are pricing in an 8% chance of a jumbo 50 basis points (bps) rate cut at the central bank’s September meeting, while a cut of at least 25 bps is viewed as a done deal, according to the CME Group’s FedWatch tool.

Appointments to the Fed’s rate-setting panel remained in focus, as President Donald Trump’s administration on Wednesday moved to appeal a federal judge’s ruling temporarily blocking Trump from taking the unprecedented step of firing Federal Reserve Governor Lisa Cook. The White House is seeking to remove her before the US central bank’s interest-rate-setting meeting next week.

Stephen Miran also moved closer to becoming a Federal Reserve governor, furthering Trump’s effort to exert more direct control over interest rate policy. The Senate Banking Committee voted to advance Miran’s nomination, though lawmakers involved said it is far from certain if the process can be completed in time for him to participate in the Fed’s September 16-17 policy meeting.

Against the yen, the dollar was trading flat at 147.41 yen, after data showing Japanese wholesale prices rose 2.7% in the year to August, accelerating from the previous month in a sign of sticky inflationary pressure in the world’s fourth-largest economy.

The euro edged upwards to USD 1.1698 EUR=EBS ahead of the European Central Bank’s policy meeting later on Thursday, where it is widely expected to keep rates on hold. Analysts said policymakers may strike a more dovish tone to counter a fraught trade and political outlook across the continent.

The single currency is recovering from a two-day streak of declines as geopolitical tensions continue on the bloc’s Eastern flank. Poland said it shot down suspected Russian drones in its airspace on Wednesday with the backing of aircraft from its NATO allies, the first time a member of the Western military alliance is known to have fired shots during Russia’s war in Ukraine.

The Australian dollar fetched USD 0.66165, up 0.04% in early trade after hitting the highest levels since November on Wednesday, buoyed by advances for commodities including iron ore, crude oil, and gold, which is near record highs.

The offshore yuan traded at 7.1184 yuan per dollar, strengthening 0.03% in early Asian trade. The kiwi slipped 0.03% to USD 0.59375.

Sterling traded at USD 1.3527, unchanged so far on the day.

(Reporting by Gregor Stuart Hunter; Editing by Jamie Freed)

S&P 500 and Nasdaq notch record-high closes as Oracle soars on AI optimism

The S&P 500 and Nasdaq notched record-high closes on Wednesday, as Oracle surged and cooler-than-expected inflation data supported expectations the US Federal Reserve will cut interest rates next week.

Oracle soared 36% in its biggest one-day percentage gain since 1992 after the tech company pointed to a demand surge from AI firms for its cloud services.

Its stock market value reached USD 922 billion, leapfrogging the values of Eli Lilly, JPMorgan Chase, and Walmart, and approaching Tesla’s USD 1.12 trillion market value.

Artificial intelligence-related chip stocks also rallied, with Nvidia up 3.8%, Broadcom jumping 10% and Advanced Micro Devices climbing 2.4%. The PHLX chip index rose 2.3% to a record high.

Data center power suppliers also benefited, with Constellation Energy, Vistra, and GE Vernova all rising more than 6%.

Apple, viewed by many investors as lagging in the race to dominate AI, declined 3.2%, sliding for a fourth straight session.

A cooler-than-expected producer prices reading provided additional momentum as traders shored up their bets on interest-rate cuts this year.

Recent labor market data has confirmed that the US jobs market is in a slowdown.

Traders fully expect the Fed to cut interest rates by at least 25 basis points at its policy meeting next week, with a 10% chance the central bank could cut by 50 basis points, CME’s FedWatch tool showed.

The S&P 500 has now climbed about 11% in 2025, while the Nasdaq has rallied about 13%.

“The fundamentals remain very strong in the equity markets, domestically. But we also have to acknowledge that valuations are extended at this point and serve as some natural tension to a continued upward trajectory,” said Bill Northey, senior investment director at US Bank Wealth Management in Billings, Montana.

The S&P 500 climbed 0.30% to end the session at 6,532.04 points, closing with a record high for the second straight day.

The Nasdaq gained 0.03% to 21,886.06 points for its third consecutive record-high close. The Dow Jones Industrial Average declined 0.48% to 45,490.92 points.

Six of the 11 S&P 500 sector indexes declined, led lower by consumer discretionary, down 1.58%, followed by a 1.06% loss in consumer staples.

Investors will now focus on consumer prices data due on Thursday, for insights on where US inflation is headed.

“Combining the softer data (PPI figures) with the Fed’s increased emphasis on the labor market side and the growing trend we’ve seen in downward revisions to the monthly employment data – all support the expectation for a rate cut,” said Jordan Rizzuto, CIO at GammaRoad Capital Partners.

In a setback for the White House, a federal judge on Tuesday temporarily blocked US President Donald Trump from removing Fed Governor Lisa Cook.

Barclays and Deutsche Bank raised their year-end targets for the S&P 500, citing stronger corporate earnings, resilient US economic growth and optimism around artificial intelligence.

Synopsys tumbled 36% in its biggest one-day decline on record after the chip design software provider missed Wall Street estimates for quarterly revenue. Rival Cadence Design Systems fell 6.4%.

Declining stocks outnumbered rising ones within the S&P 500 by a 1.5-to-one ratio.

The S&P 500 posted 19 new highs and 8 new lows; the Nasdaq recorded 112 new highs and 72 new lows.

Volume on US exchanges was relatively heavy, with 17.2 billion shares traded, compared with an average of 16.0 billion shares over the previous 20 sessions.

(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru, and by Noel Randewich in San Francisco; Editing by Pooja Desai and Matthew Lewis)

Gold prices trade above USD 3,600 on Fed rate-cut bets

Gold prices hovered near a record high on Tuesday, holding firm above the USD 3,600 level, as growing expectations for a US Federal Reserve interest rate cut this month lifted demand for the precious metal.

FUNDAMENTALS

* Spot gold was up 0.1% at USD 3,640.41 per ounce, as of 0103 GMT. Bullion rose to a record high of USD 3,646.29 on Monday.

* US gold futures for December delivery edged 0.1% higher to USD 3,682.

* US job growth weakened sharply in August and the unemployment rate increased to a nearly four-year high of 4.3%, confirming that labor market conditions were softening and sealing the case for a Fed rate cut next week.

* Traders are pricing in an 89.4% chance of a 25-basis-point rate cut at the Fed’s September meeting and a 10.6% probability of a jumbo 50-basis-point rate cut, according to the CME Group’s FedWatch tool.

* Lower US interest rates put pressure on the dollar and bond yields, increasing the appeal of non-yielding bullion.

* The dollar index fell to an almost seven-week low against its rivals, making gold more attractive for other currency holders, while the benchmark US 10-year yield dropped to a five-month low.

* Meanwhile, the European Central Bank is widely expected to hold rates at its policy meeting on Thursday.

* Investors are now awaiting US producer price data on Wednesday and consumer prices on Thursday for further clues on the Fed’s policy path.

* Gold prices have gained 38% so far this year, following a 27% jump in 2024, bolstered by soft dollar, strong central bank accumulation, dovish monetary settings and heightened global uncertainty.

* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.23% to 979.68 tons on Monday from 981.97 tons on Friday

* Elsewhere, spot silver was flat at USD 41.31 per ounce. Platinum gained 0.3% to USD 1,387.20 and palladium climbed 0.8% to USD 1,142.64.

(Reporting by Brijesh Patel in Bengaluru; Editing by Sherry Jacob-Phillips)

Dollar falls hits 7-week low as jobs gloom heightens Fed cut chances

The dollar sank to an almost seven-week low on Tuesday as investors braced for US data revisions that could show the jobs markets in worse shape than initially thought, shoring up the case for even deeper Federal Reserve interest rate cuts.

The dollar index fell to the lowest since July 24 in Asia trade to 97.344 ahead of the release of preliminary benchmark revisions for jobs data covering the period from April 2024 to March 2025. Economists anticipate a downward revision of as much as 800,000 jobs, which could signal that the Federal Reserve is behind the curve in efforts to achieve maximum employment.

“The employment numbers are getting worse and worse at a heavy rate,” said Alex Hill, managing director at Electus Financial in Auckland. “That’s translating into a weaker US dollar slowly, but we expect that to accelerate.”

Advisors to the Trump administration are preparing a report laying out the alleged shortcomings of the Bureau of Labor Statistics, which they may publish in coming weeks, The Wall Street Journal reported on Tuesday, citing unnamed sources.

Last month US President Donald Trump fired BLS Commissioner Erika McEntarfer, accusing her, without evidence, of faking the employment data.

US bond investors say they are seeing cracks emerging in the outlook, warning the market is underpricing long-term fiscal risks and the danger posed by White House pressure on the central bank to cut interest rates.

Traders are pricing in an 89.4% chance of a 25 basis point rate cut at the Fed’s September meeting and a 10.6% probability of a jumbo 50 basis point rate cut, according to the CME Group’s FedWatch tool.

Gold hovered not far from record highs, up 0.1% at USD 3,636.58.

The euro edged higher to USD 1.1774, just shy of the highest level since July 28 and up 0.1% so far in Asia. Its appreciation was restrained as France’s parliament brought down the government on Monday over plans to tame ballooning national debt, deepening a political crisis that is weakening the euro zone’s second-largest economy.

The European Central Bank is widely expected to hold rates at its policy meeting on Thursday.

The yen strengthened against the dollar, reversing weakness from Monday after prime minister Shigeru Ishiba resigned. The currency was 0.2% stronger at 147.22 yen and speculation turned to who could succeed him.

The Australian dollar fetched USD 0.6598, up 0.1% in early trade, while the kiwi traded 0.1% higher at USD 0.5943.

The offshore yuan traded flat at 7.1212 yuan per dollar, while sterling traded at USD 1.3556, up 0.1% so far on the day.

(Reporting by Gregor Stuart Hunter; Editing by Sam Holmes)

Nasdaq notches record high close; traders focus on rate cuts

The Nasdaq notched a record high close on Monday, lifted by a rally in Broadcom, while the S&P 500 also gained as investors bet the Federal Reserve will soon lower borrowing costs to shore up economic growth.

Investors expect multiple interest rate cuts this year after a troubling nonfarm payrolls report on Friday added to concerns about a weakening US job market. The report, which had dragged down Wall Street in the previous session, has stoked fears of a potential slowdown in the world’s biggest economy.

Traders have fully priced in at least a 25 basis point interest rate cut when the Fed wraps up its two-day policy meeting on September 17, with interest rate futures reflecting a 10% chance of a 50 basis point cut, according to CME Group’s FedWatch tool.

“The focus is on next Wednesday’s Fed rate cut. The market is greedy. It’s already discounted 25 basis points. Now, if people are buying because they expect 50, well, that’s not going to happen,” warned Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

Numerous brokerages have revised calls for Fed interest rate cuts. Barclays now anticipates three cuts of 25 bps each in 2025 compared with two earlier, while Standard Chartered expects a 50-bps trim in September – double its earlier projection.

Broadcom climbed 3.2%, extending its rally since the chipmaker said last Thursday it expects sharp artificial intelligence-related revenue growth. Its market capitalization has reached USD 1.6 trillion, and it is Wall Street’s seventh most valuable company.

The S&P 500 climbed 0.21% to end at 6,495.15 points.

The Nasdaq gained 0.45% to 21,798.70 points, its highest close ever. The Dow Jones Industrial Average rose 0.25% to 45,514.95 points.

The S&P 500 is up about 10% so far in 2025, and the Nasdaq has climbed about 13%.

Six of the 11 S&P 500 sector indexes declined, led by utilities, down 1.07%. The S&P 500 technology index rose 0.67%.

This week, investors will keep a close watch on inflation data and the Bureau of Labor Statistics’ benchmark payroll revision for further clues on the US economic health and to see if they could strengthen the case for a bigger rate cut.

“The growth scare from the labor market is going to overwhelm even hot inflation because the Fed right now is viewing any tariff-induced inflation as a one-time price increase,” said Jeff Schulze, head of economic and market strategy at Clearbridge Investments.

Among other stocks, retail trading platform Robinhood Markets jumped 16% and marketing platform AppLovin soared 12%, with the two companies set to join the S&P 500, effective September 22.

EchoStar rallied 20% after the telecommunications services firm agreed to sell wireless spectrum licenses to SpaceX for its Starlink satellite network for about USD 17 billion.

Other telecommunications companies fell, with AT&T and Verizon both down more than 2% and T-Mobile losing almost 4%.

Declining stocks outnumbered rising ones within the S&P 500 by a 1.0-to-one ratio.

The S&P 500 posted 18 new highs and eight new lows; the Nasdaq recorded 136 new highs and 95 new lows.

Volume on US exchanges was relatively heavy, with 16.2 billion shares traded, compared to an average of 16.1 billion shares over the previous 20 sessions.

(Reporting by Purvi Agarwal and Ragini Mathur in Bengaluru, and by Noel Randewich in San Francisco; Editing by Pooja Desai, Shinjini Ganguli and Richard Chang)

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