Closing Bell: Wall Street Rises on Tech and Industrials, Financials Under Pressure

Tech, industrials, and materials lifted Wall Street, while financials lagged.

Market Recap

U.S. equities advanced Thursday, extending gains after the Federal Reserve’s rate cut provided a supportive backdrop for growth names. The Nasdaq led the major averages, driven by strength in semiconductors and select mega-cap tech, while the S&P 500 closed higher and the Dow posted more modest gains as industrials showed mixed performance.

• Dow Jones Industrial Average: +0.4%

• S&P 500: +0.5%

• Nasdaq Composite: +0.8%

Market breadth improved relative to earlier in the week, with growth sectors outperforming value and cyclical groups. Trading volumes picked up into the close as investors positioned ahead of upcoming economic releases.

Policy & Macro

The Fed’s 25 basis point cut continues to shape sentiment. Futures markets are now pricing in a strong chance of another cut by November, though Treasury yields edged slightly higher today as investors questioned how quickly easing will proceed.

With no major data releases, attention stayed on corporate earnings and sector rotation. Focus now shifts to Friday’s jobless claims and regional manufacturing reports for additional confirmation of the Fed’s trajectory.

Stocks on the Move

• Intel (INTC -3%) & Nvidia (NVDA +0.24% ):
  Semiconductors remained in focus. Intel jumped more than 20% after Nvidia disclosed a $5 billion investment in the company, seen as a significant endorsement of Intel’s data center and AI strategy. Nvidia rose modestly, extending its rebound. The deal lifted sentiment across the semiconductor space.

• FedEx (FDX +2.4%):
  Shares gained after reporting better-than-expected earnings and raising full-year guidance. Management highlighted resilient shipping volumes and ongoing efficiency gains. The results offered a constructive read on industrial demand.

• Apple (AAPL +3.2%):
  Apple advanced following a price-target increase from a major brokerage, supported by optimism around iPhone demand. The move added to tech sector strength and underlined the influence of mega-cap names on index performance.

• Newmont (NEM +4.4%):
  Gold miner Newmont rose more than 4%, among the top gainers in the S&P 500. Precious metals stocks benefited from safe-haven demand and shifting interest rate expectations, highlighting the defensive side of the market.

Sector & Market Tone

Technology led gains, but advances extended into industrials, small-cap growth, and materials. Energy was mixed as crude prices held steady. Financials underperformed, pressured by concerns about net interest margins in a lower-rate environment.

Bond yields rose slightly despite the Fed’s dovish tilt, suggesting investors are not fully convinced inflation risks have eased. The dollar weakened modestly, supporting commodities and global risk assets.

Key Takeaways

• Growth stocks rallied with tech and semiconductors anchoring gains.

• Industrials and materials joined the advance, highlighted by FedEx’s earnings beat and Newmont’s gains.

• While the Federal Reserve’s rate cut supports risk appetite, persistent volatility and trade tensions continue to weigh on confidence.

• Financials underperformed, pressured by the earnings outlook in a lower-rate environment.

What to Watch Next Week

Monday - ISM Manufacturing PMI:

Key gauge of industrial activity and supply chain trends.

Tuesday - JOLTS Job Openings:

Insight into labor market demand; closely watched by the Fed.

Wednesday - Services PMI & Fed Speakers:

Services activity drives the bulk of U.S. growth; Fed commentary could refine rate-cut expectations.

Thursday - Weekly Jobless Claims & Trade Balance:

Updates on labor momentum and external demand.

Friday - Consumer Sentiment (Michigan):

Measure of household confidence that influences spending trends.