Kristina Roberts
On Friday, US stock markets finished the day on a high note, with the Nasdaq reaching another record closing level. This was the second day in a row the Nasdaq set a new record. The main reason behind this rise was the strong performance of technology companies, especially Apple. Investors also seemed hopeful that interest rates might be cut soon, which added to the positive mood in the market.
The three biggest stock indexes in the US – the Dow Jones Industrial Average, the S&P 500, and the Nasdaq – all saw solid gains for the week. This upbeat performance came after several weeks of mixed results in the market.
Apple was one of the standout performers. On Friday alone, Apple’s share price jumped by 4.2%. Over the whole week, the company’s stock gained 13.3%, marking its biggest weekly percentage rise since 2020. This sudden boost came after US President Donald Trump announced on Wednesday that Apple would invest another $100 billion in the United States. This brings Apple’s total planned investment in the country to $600 billion over the next four years. This huge financial commitment from Apple sent a strong message to investors about the company’s confidence in the American economy.
Technology was not the only sector doing well. The S&P 500 technology index and the communication services index both led the way in Friday’s market gains. Both of these indexes closed at record highs as well. This shows how much the technology and communications sectors are influencing the broader market at the moment.
Another company making headlines was Gilead Sciences. Its shares rose by 8.3% on Friday after the company increased its full-year financial forecast. This announcement gave investors more confidence that Gilead’s performance will remain strong for the rest of the year.
One of the reasons for this overall market optimism is recent economic data, which has been weaker than expected. Usually, weaker economic numbers might sound bad for the economy, but in this case, they have given investors hope that the US Federal Reserve might cut interest rates. Lower interest rates can make borrowing cheaper for companies and consumers, which often boosts spending and investment.
Investors are also watching closely as President Trump made a temporary appointment to the Federal Reserve. On Thursday evening, he nominated Stephen Miran, who is currently the Chair of the Council of Economic Advisers, to fill a short-term position on the Fed’s board. This appointment came after Adriana Kugler left the position suddenly last week. At the same time, Trump is narrowing down his list of candidates to replace current Fed Chair Jerome Powell, whose term ends on May 15.
Miran is known to share many of Trump’s views. In the past, he has said that Jerome Powell was “too late” in lowering interest rates. This background suggests that Miran might support Trump’s calls for quicker rate cuts.
Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey, explained the thinking of many investors: “There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don’t fight the Fed on lower rates.” His comment reflects a common belief in the investment world that it’s better to go along with the Federal Reserve’s policies instead of betting against them.
However, Meckler also pointed out that there is another major factor in play – tariffs. “The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain,” he said.
This week, Trump’s higher tariffs on goods coming from dozens of countries officially took effect. Tariffs can make imported goods more expensive, which can help some American companies but also risks raising costs for consumers and businesses. Investors are still unsure how these new tariffs will affect the economy in the long run.
At the moment, market expectations for a rate cut in September are very high. According to the CME’s FedWatch Tool, there is an 89.4% chance that the Federal Reserve will lower rates by at least 25 basis points at its September meeting. Just a week ago, that probability was 80.3%. Futures markets are also predicting that there could be at least two rate cuts before the end of the year.
The Dow Jones Industrial Average rose by 206.97 points on Friday, an increase of 0.47%, closing at 44,175.61. The S&P 500 went up by 49.45 points, or 0.78%, to finish at 6,389.45. The Nasdaq Composite had the biggest percentage gain of the three, rising by 207.32 points, or 0.98%, to end the day at 21,450.02.
The market’s recent gains reflect a combination of optimism about the future, excitement over major corporate announcements, and hope for supportive action from the Federal Reserve. But at the same time, investors are keeping an eye on challenges like tariffs, political decisions, and the possibility that the economy could slow down.
For now, technology stocks remain the star of the show, driving indexes to record levels. Apple’s remarkable rise this week was a clear example of how one company’s big plans can lift the entire market’s mood. The mix of corporate strength and investor hopes for cheaper borrowing costs created the perfect environment for Friday’s rally.
Still, the story is far from over. With new tariffs in place, a possible change in Fed leadership on the horizon, and key decisions coming in the next few months, the stock market could see more twists and turns. But for now, the closing bell on Friday brought smiles to many investors’ faces, as the week ended with records being broken and confidence running high.
