Expecting a Rate Cut, Nasdaq Rises to All-Time High above 21,800
Nebius and Nvidia helped the Nasdaq Composite index climb to a record high this week as hope for a Fed cut increases.
Quick overview
- The Federal Reserve is expected to announce a rate cut on September 17th, boosting investor optimism in the stock market.
- The Nasdaq Composite index reached a record high, driven by strong performances from tech stocks like Nvidia and Nebius.
- Despite a dip in the S&P 500, the overall market is rallying in anticipation of the Fed's decision and upcoming tech product launches.
- Oracle's stock has surged over 40% this year, with its quarterly earnings report anticipated this week amid the AI tech boom.
The Federal Reserve is likely to issue a rate cut on September 17th, and a record high Nasdaq is helping to pull up the stock market with that hope.
The Nasdaq Composite index rose 0.09% on Monday after the market rallied. It appears that investors expect an interest rate cut from the Fed to come next week. The last cut occurred in December of 2024, and a new cut is likely to give the market a needed boost during the usually low-performing September month.
Nvidia (NVDA) experienced a big jump on Monday that propelled the stock right back to $170 per share, which is where it was before it fell on Friday. Nebius (NBIS) was one of the big winners on Monday, as its stock price climbed 36% on Tuesday once the market opened. The company just completed a huge AI deal with Microsoft (MSFT). They will be providing AI infrastructure for the tech giant.
Market Swings away from Nonfarm Payroll Low
The stock market fell on Friday as a result of a poor report from the U.S. Labor department for nonfarm payrolls. With the jobs market apparently shrinking and unemployment growing, the stock market reacted with a swift dip.
But hope surged on Monday as talk of a new Fed rate cut took over the investment conversation. We are now just over a week away from what could be the first interest rate cut of 2025, and the stock market is stoked.
The Nasdaq Composite managed to hit an all-time high as a result, and the Dow Jones is up 0.13%. The S&P 500 dipped 0.03% on Tuesday shortly after the market opened, since that index is not as strongly supported by tech stocks like the Nasdaq is. Since those particular stocks are doing so well right now, the Nasdaq has been able to set a new record and dramatically outperform the S&P 500.
Speculation over a new rate cut is sure to drive investor interest throughout this week, and the launch of the iPhone 17 is sure to send Apple (APPL) stock soaring. This week will also see the release of Oracle’s (ORCL) quarterly earnings report. Oracle’s stock has grown more than 40% this year as they take advantage of the AI tech boom.
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