14 Aug 2025, 06:50
S&P 500 and Nasdaq Reached New Closing Records Amid Hopes for Rate Cuts
- S&P 500 and Nasdaq reached new closing records.
- Investors anticipate a reduction in rates by the Federal Reserve.
- The health care sector showed leadership in growth.
This is reported by NBC News, The Yomiuri Shimbun.
/ Source: Reuters
The S&P 500 and Nasdaq benchmarks achieved new closing records for the second consecutive session on Wednesday, as investors look forward to a possible reduction in interest rates by the Federal Reserve. In line with previous data, the S&P 500 rose by 21.01 points or 0.33% to 6466.77 points, while the Nasdaq Composite increased by 32.08 points or 0.15% to 21713.99.
However, the market showed some weakness in certain technology stocks following the previous strong growth. Major tech companies like Nvidia, Alphabet, and Microsoft experienced declines, as investors sought new drivers of growth.
Additionally, the MSCI All Country World Index reached a record level, climbing 0.60% to 952.83. The materials, health care, and consumer goods sectors saw growth in 11 sectors of the S&P 500, while communication services, consumer goods, and technology stocks showed losses.
Investors also noted positive changes in other sectors following recent growth in technology stocks. Health care stocks, which have been declining for a year, became leaders in growth. At the same time, U.S. Treasury Secretary Janet Yellen expressed the view that aggressive rate cuts may be possible in light of recent weak employment data.
Traders are increasingly betting on the likelihood of a 25 basis point rate cut, according to the CME FedWatch tool. According to the Federal Reserve Bank of Chicago President Austan Goolsbee, the central bank is looking to determine whether to implement temporary or permanent inflationary measures.
Tags: USA/Economy