Last Updated on September 19, 2025 4:33 pm by BIZNAMA NEWS
New York
Wall Street’s major stock indices surged to record highs on Friday, buoyed by strong performances from leading technology companies and investor optimism following the Federal Reserve’s signal of a more accommodative monetary policy.
The Nasdaq Composite Index, heavily weighted towards technology stocks, gained over 0.9% to close at 22,471, marking its highest finish ever. The S&P 500 advanced nearly 0.5%, ending the session at 6,632, while the Dow Jones Industrial Average climbed close to 0.3% to settle at 46,142.
Fed Signals Softer Stance
The rally came a day after the U.S. Federal Reserve hinted at a potential rate easing path, sparking renewed confidence in equity markets. Fed Chair Jerome Powell noted that inflation has shown signs of cooling while economic growth remains resilient, suggesting that the central bank may adopt a less aggressive stance on interest rates in the coming months.
Lower interest rates typically make borrowing cheaper for businesses and households, boosting spending and investment. This, in turn, supports corporate earnings and strengthens market sentiment.
Tech Giants Drive the Rally
Technology heavyweights, including semiconductor and cloud computing firms, were among the top gainers as investors bet on continued demand for artificial intelligence (AI), advanced chips, and digital services. Market analysts pointed out that the tech sector has been particularly sensitive to interest rate expectations, and the Fed’s dovish signal provided fresh momentum.
Investor Optimism and Market Outlook
Financial experts say the record-breaking rally reflects investors’ belief that the U.S. economy can achieve a “soft landing”—slowing inflation without slipping into a deep recession. “Markets are responding positively to the Fed’s message. The expectation of lower borrowing costs is seen as a tailwind for growth-oriented sectors, particularly technology,” said one Wall Street strategist.
At the same time, some analysts cautioned that persistent global uncertainties—ranging from energy price volatility to geopolitical risks—could still weigh on future performance.
Global Spillover
The upbeat sentiment on Wall Street is expected to influence global markets, with Asian and European equities likely to track the rally in the coming sessions. A softer U.S. dollar and declining bond yields also added to the bullish environment for risk assets.
