Major Stock Indexes Reach All-Time Highs Amid Market Optimism

NEW YORK, NY — Major stock indexes hit all-time highs for a second consecutive day on Friday, with the S&P 500 and Nasdaq Composite achieving a third week of gains. The S&P 500 rose by 0.7%, while the Nasdaq gained 0.5%, and the Dow Jones Industrial Average climbed 0.4%.

The small-cap index also reached a record on Friday, although it experienced a 0.7% decline by the end of the day. The S&P 500 and Nasdaq had previously closed lower on Wednesday following the Federal Reserve’s recent announcement of an interest rate cut, marking the first reduction since December.

Investor optimism surged on Thursday after Nvidia announced a $5 billion investment in Intel. Intel’s stock peaked nearly 23% that day, becoming a significant contributor to the gains of both the S&P 500 and Nasdaq, but the shares ended Friday down by more than 3%. Nvidia’s stock, after previously increasing 3.5%, finished with a modest gain of 0.2%.

In political news, President Donald Trump stated he and Chinese leader Xi Jinping confirmed a deal that would prevent a U.S. ban on TikTok. This news positively impacted Oracle shares, which were up by 3% as the company joined a consortium to manage TikTok’s U.S. operations.

In tech, Apple shares rose over 3% as they launched the new iPhone 17 models globally. FedEx stocks also advanced by 2.4%, while Lennar’s shares dropped by 4% after the homebuilder reported financials that fell short of expectations amid challenges in the housing market.

The 10-year Treasury yield, which influences borrowing costs for various loans, was recorded at 4.13%, slightly up from 4.11% on Thursday. Gold futures rose 1% to $3,720 per ounce, whereas West Texas Intermediate crude oil futures decreased by 1.4%, closing at $62.70 a barrel. Bitcoin witnessed a nearly 2% drop to $115,300.

Despite some initial negative reactions to Nvidia’s investment in Intel, analysts continued to view the long-term impacts as likely limited. Bank of America analysts indicated that both AMD and ARM should not face significant near-term repercussions from the deal.

Lennar’s recent financial report highlighted the ongoing pressures within the housing sector, with the company’s adjusted earnings falling short of estimates. CEO Stuart Miller expressed cautious optimism, suggesting that trends may improve as market conditions stabilize.

The Russell 2000 index recently closed at a new high, indicating a potential shift toward better performance for small-cap stocks, traditionally favored in declining interest rate environments, as investors await clearer signals for growth.

As market watchers closely observe the ongoing developments, the overall sentiment suggests continued potential for growth despite existing uncertainties.