Stock Market Hits Record Highs After Fed Rate Cut

Index Performance

S&P 500: +1.2% to ~6,664, setting a new record high.
Nasdaq Composite: +2.2% to ~22,518, also a record close.
Dow Jones Industrial Average: +1.0% to ~46,170.
Russell 2000: +~2.0% on the week, continuing its outperformance since the Fed’s policy pivot.

Federal Reserve & Macro

Fed cut the federal funds rate by 25 bps, its first cut in 2025, bringing the target range to 4.75%–5.00%.
Policy projections indicated potential additional cuts in October and December.
Jobless claims: 231,000, better than the ~246,000 expected.
Philadelphia Fed Index: rebounded to 23.2 in September from -0.3 in August.
Treasury yields ended lower, with the 10-year yield near 4.01%.

Sector Moves

Technology/Semis: Strongest sector; semiconductors led by Intel (INTC) +22.8% after Nvidia (NVDA) disclosed a $5B investment.
Industrials/Transports: FedEx (FDX) +5% post-earnings beat and raised guidance.
Housing: Lennar (LEN) -4–5% after Q3 revenue miss and weak guidance.
Materials: Nucor (NUE) fell after lowering profit outlook.
Utilities: Notched weekly gains as yields softened.

Corporate Highlights

INTC: Surged nearly 23% on Nvidia’s stake, lifting broader semis (AMAT, LRCX, MU all +4–6%).
TSLA: Upgraded by Baird to “Outperform,” supported by optimism around AI/robotaxi initiatives.
AAPL: Rose ~2–3% on iPhone 17 launch strength and price target hikes.
FDX: Beat Q1 FY26 estimates with EPS $3.76 vs. $3.62 est., revenue $21.9B vs. $21.65B est.
LEN: Reported EPS $3.63 vs. $3.55 est., revenue $9.08B vs. $9.21B est., driving stock lower.

Fund Flows & Sentiment

Despite weekly gains, U.S. equity funds saw outflows exceeding $5B, showing investor caution around elevated valuations.
Volatility remained contained; VIX closed below 13.

Geopolitical / Trade

Weekly Summary

Equities rallied to record highs on the back of the Fed’s first rate cut of 2025 and renewed tech leadership. The Nasdaq gained 2.2% and the S&P 500 rose 1.2%, with semiconductors driving strength, while housing and select materials lagged. Strong corporate catalysts, better-than-expected macro data, and easing trade tensions offset concerns over equity outflows and valuations.