Stocks Hit Records as Fed Rate Cuts Fuel Earnings Optimism and Extend Rally – US Market Wrap

Wall Street ended the highly anticipated Federal Reserve week with stocks reaching new all-time highs as prospects for more rate cuts boosted corporate earnings.

While calls for a temporary pause have emerged following the S&P 500’s nearly $15 trillion rally from its April lows, bullish sentiment has prevailed. That came after Fed officials resumed easing policy while the economy was still growing, sending a positive signal for risk-taking.

The S&P 500 surpassed 6,660 Friday, with tech megacaps leading the way. Oracle was said to be in talks with Meta over a cloud computing deal worth around $20 billion. A gauge of smaller firms fell after setting a record for the first time since 2021.

While the market extended its gains into the close, some analysts said the $5 trillion triple-witching options expiry had little impact on exacerbating price swings given the low volatility.