US: Stocks end at records, extending rally
[NEW YORK] Wall Street stocks finished at fresh records on Friday (Sep 19), extending a rally after the US Federal Reserve announced its first interest rate cut of 2025.
All three major indices posted records for the second day in a row, with the Dow Jones Industrial Average finishing up 0.4 per cent at 46,315.27.
The broad-based S&P 500 gained 0.5 per cent to 6,664.36, while the tech-rich Nasdaq Composite Index advanced 0.7 per cent to 22,631.48.
“Traders are satisfied” with the Federal Reserve’s decision, said FHN Financial’s Chris Low.
The Fed on Wednesday lowered interest rates by 25 basis points and signalled it could cut two more times in 2025. The central bank explained its move as a response to weaker job data, adding that future decisions would depend on how the economy evolves.
But Jack Ablin of Cresset Capital Management noted that the rise in US Treasury yields represents a source of concern.
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“I’m going to celebrate the equity records, but the market is expensive and the 10-year yields is moving higher,” Ablin said. “That’s something we need to pay attention to.”
US President Donald Trump on Friday described as “very productive” a call with Chinese President Xi Jinping that included discussion on selling blockbuster app TikTok, although no final deal was reached.
Markets have greeted the cordial tone of US-China negotiations, a shift from earlier in the year when both sides were announcing heavy tariffs.
Among individual companies, FedEx climbed 2.4 per cent after reporting higher quarterly profits as pointed to strength in its US business and a lift from cost cuts.
Apple jumped 3.2 per cent as the tech giant’s launch of new iPhones was greeted with long queues at retail outlooks, suggesting strong demand for the devices. AFP
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