Dow Jones Recovers from Downturn in Time for the Weekend
The Dow Jones and the other top stock indices are around their record highs as the week closes off with an upward swing.
Quick overview
- The Dow rose 0.77% after a bearish week, indicating a potential market turnaround driven by hopes of lower tariffs and Fed rate cuts.
- All three major indices, including the S&P 500 and Nasdaq, are near all-time highs, suggesting a positive outlook for September.
- September may break its historical trend of poor stock performance, with anticipated Federal Reserve interest rate cuts and tariff decisions on the horizon.
- The stock market is showing signs of recovery, with a stable inflation rate and positive economic sentiment contributing to its upward trajectory.
The Dow ticked up 0.77% after a mostly bearish week, signaling a turn for the market that could carry through the weekend, lifted by the hope of lower tariffs and Fed rate cuts.
The Dow Jones Industrial Average is up slightly for Friday morning, with the S&P 500 up by 0.83%, and the Nasdaq Composite adding 0.98%. These three indices are all around all-time highs, which bodes well for the early September numbers and the potential for the rest of the month.
Why September Might Be a Strong Stock Market Month This Year
Historically, September is a doldrum month for the stock market, often suffering from the worst stock performance for the year. That could change this month, and it is partly because the first third of 2025 was so bad but then was followed by a strong second third.
There are a few promising events coming up this month, with perhaps the most notable being a new Federal Reserve interest rate cut. There is a high chance that the fed will issue a cut in September, specifically on the 17th, which is when their next rate decision meeting is scheduled.
September could also be when there is a definitive decision made about U.S. President Donald Trump’s tariffs. Those tariffs are going before the United States Supreme Court, and a ruling is expected in the near future. It is possible that many or all of his new tariffs from 2025 will be repealed if it is found that he issued them without the proper authority.
The Stock Market Climbs Higher
Why is the stock market up as we head into the weekend? We are seeing the stock market pull out of a short downturn that started late last week. The Nasdaq Composite has gone through a couple hills and troughs recently, with the higher points pulling the market up to an elevated level compared to where it was before the troughs started.
That is a promising trend, and something similar is happening across all three major indices- the Dow Jones, the Nasdaq, and the S&P 500. We could see the market end the week on a high note and pull through September with a historically high performance. With record highs for the stock market indices, a steady inflation rate, and mildly positive sentiment on the economy, the stock market is in a relatively stable and strong place.
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