US Stocks Rally to Fresh Highs on Tech Surge and Fed Rate Cut Hopes

US stocks climbed on Friday, with the Nasdaq closing at a record high for the second consecutive session, fueled by gains in technology shares and renewed optimism over potential Federal Reserve rate cuts later this year.

The S&P 500 and Dow Jones Industrial Average also finished higher, marking solid weekly gains across all three major indexes.

Tech Giants Lead the Charge

Apple’s stock extended its upward momentum after U.S. President Donald Trump announced earlier this week that the company would invest an additional $100 billion in the United States—raising its total pledge to $600 billion over the next four years. The S&P 500 technology sector benefited, not only from Apple’s performance but also from broader investor enthusiasm for tech-related stocks.

Gilead Sciences also helped lift the S&P 500, with its shares rising after the company boosted its full-year earnings forecast. As of Friday, earnings reports from over 450 S&P 500 companies put estimated Q2 earnings growth at 13.2%, up sharply from 5.8% on July 1, according to LSEG data.

Rate Cut Speculation Builds

Weaker recent economic data has strengthened market expectations for interest rate cuts. Adding to the intrigue, President Trump nominated Stephen Miran, Chair of the Council of Economic Advisers, for a short-term position on the Fed’s board following Adriana Kugler’s sudden departure. Miran—often aligned with Trump—has previously criticized Fed Chair Jerome Powell for being “too late” in lowering rates.

According to CME Group’s FedWatch tool, traders now see a 90% probability of the first rate cut arriving next month, with futures pricing in at least two cuts before year-end. Powell’s current term ends on May 15 next year, and Trump’s shortlist for his successor is narrowing.

Market Closing Numbers

• S&P 500: +49.45 points (+0.78%) to 6,389.45
• Nasdaq Composite: +207.32 points (+0.98%) to 21,450.02
• Dow Jones Industrial Average: +206.97 points (+0.47%) to 44,175.61

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