The S&P 500 and Nasdaq reached new highs as investors anticipate a potential Fed easing cycle. Tech stocks weakened despite strong gains, with some falling including Nvidia, Alphabet, and Microsoft. Treasury Secretary suggests a possible half-point rate cut due to recent weak employment data. Healthcare stocks saw a 1.6% rise, following a tech-led rally.

Apple climbed 1.6% on plans to expand into AI-powered robots. The Dow Jones rose 463.66 points, the S&P 500 gained 20.82 points, and the Nasdaq Composite gained 31.24 points. The Russell 2000 index, tracking small-cap companies, hit a six-month high. Traders expect a 25 basis-point interest rate cut, with potential for more.

Chicago Fed President discusses the impact of tariffs on inflation and potential interest rate cuts. CoreWeave, backed by Nvidia, reported a larger-than-expected net loss. Paramount Skydance surged 36.7% after securing exclusive UFC broadcasting rights. Advancing issues on NYSE outpaced decliners 4.05-to-1, with 630 new highs.

On the Nasdaq, advancing issues surpass decliners 2.53-to-1. S&P 500 saw 40 new highs and 2 new lows, while Nasdaq recorded 149 new highs and 69 new lows. U.S. exchange volume was light at 16.9 billion shares, below the 20-session average of 18.3 billion shares. Market remains focused on Fed decisions and trade uncertainty impact.

Read more at Yahoo Finance: S&P 500, Nasdaq hit new closing highs on rate cut hopes