{"id":53353,"date":"2025-09-19T16:07:36","date_gmt":"2025-09-19T20:07:36","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/wall-street-extends-rally-to-record-highs-as-fed-optimism-fuels-tech-and-growth-stocks\/53353\/"},"modified":"2025-09-19T16:07:36","modified_gmt":"2025-09-19T20:07:36","slug":"wall-street-extends-rally-to-record-highs-as-fed-optimism-fuels-tech-and-growth-stocks","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-extends-rally-to-record-highs-as-fed-optimism-fuels-tech-and-growth-stocks\/53353\/","title":{"rendered":"Wall Street Extends Rally to Record Highs as Fed Optimism Fuels Tech and Growth Stocks"},"content":{"rendered":"<p>The U.S. stock market concluded a robust week, with major indexes hitting fresh record highs on Friday, September 19, 2025, extending gains fueled by optimism surrounding the Federal Reserve&#39;s recent interest rate cut and expectations for further easing. Investors continued to digest the implications of the Fed&#39;s 25-basis-point rate reduction announced earlier in the week, signaling a supportive environment for economic growth and corporate earnings.<\/p>\n<h2>Major Market Indexes Conclude Week on a High Note<\/h2>\n<p>On Friday, the <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/sp500\/today\" data-internallinksmanager029f6b8e52c=\"3\" title=\"snp500 today\">S&amp;P 500<\/a><\/strong> (<a href=\"\/stock\/SPX\">SPX<\/a>), <strong>Nasdaq Composite<\/strong> (<a href=\"\/stock\/IXIC\">IXIC<\/a>), and <strong><a href=\"https:\/\/stockmarketwatch.com\/indices\/dowjones\/today\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Dow Jones Today\">Dow Jones<\/a> Industrial Average<\/strong> (<a href=\"\/stock\/DJI\">DJI<\/a>) all reached new all-time highs for the second consecutive session, capping off a strong week for Wall Street. The tech-heavy Nasdaq Composite advanced 0.5%, while both the blue-chip Dow Industrials and the benchmark S&amp;P 500 were approximately 0.4% higher as of late Friday afternoon trading. This builds on Thursday&#39;s impressive performance, where the Dow Jones Industrial Average jumped 0.3%, or 124.10 points, to close at 46,142.42 points. The S&amp;P 500 gained 0.5%, or 31.61 points, finishing at 6,631.96 points, and the Nasdaq Composite climbed 0.9%, or 209.40 points, to end at 22,470.73.<\/p>\n<p>The broader market also saw significant participation, with the <strong>Russell 2000<\/strong> small-cap index also hitting a record high on Friday before a slight retreat, following a substantial 2.4% advance on Thursday. Sectoral strength was evident, with the Technology Select Sector SPDR (<a href=\"\/stock\/XLK\">XLK<\/a>) gaining 1.7% and the Industrials Select Sector SPDR (<a href=\"\/stock\/XLI\">XLI<\/a>) adding 1.1% on Thursday. Market breadth remained positive, as advancing issues significantly outnumbered decliners on both the <a href=\"https:\/\/stockmarketwatch.com\/exchanges\/nyse\/today\" data-internallinksmanager029f6b8e52c=\"2\" title=\"NYSE Today\">NYSE<\/a> and Nasdaq on Thursday. Overall trading volume on Thursday was higher than the 20-session average, indicating strong investor engagement.<\/p>\n<h2>Key Stock Movements and Corporate News<\/h2>\n<p>Several companies made headlines with significant stock price movements and corporate announcements.<\/p>\n<p><strong>Intel<\/strong> (<a href=\"\/stock\/INTC\">INTC<\/a>) was a major focal point, having surged an astonishing 22.8% on Thursday. This monumental gain, its largest single-day increase since October 1987, came after <strong>Nvidia<\/strong> (<a href=\"\/stock\/NVDA\">NVDA<\/a>) announced a strategic $5 billion investment in Intel to co-develop advanced data center and PC chips. Nvidia&#39;s shares also saw a positive bump, ending Thursday 3.5% higher. However, the momentum for Intel shifted on Friday, with its shares retreating by 3.3% after Citigroup downgraded the stock to &quot;sell,&quot; expressing concerns about Intel&#39;s foundry business despite Nvidia&#39;s investment. Nvidia&#39;s stock, conversely, remained relatively unchanged on Friday.<\/p>\n<p>In other corporate news, <strong>FedEx<\/strong> (<a href=\"\/stock\/FDX\">FDX<\/a>) delivered better-than-expected quarterly results, reporting earnings 15 cents ahead of expectations and exceeding revenue forecasts. The shipping giant&#39;s strong domestic package business contributed to its stock rising 1.4% on Friday. Conversely, homebuilder <strong>Lennar<\/strong> (<a href=\"\/stock\/LEN\">LEN<\/a>) experienced a notable decline, dropping nearly 6% on Friday. The company reported adjusted earnings per share of $2 for its fiscal third quarter, missing consensus estimates, and revenue of $8.8 billion, which also fell short of expectations. Lennar cited ongoing pressures in the housing market and increased incentives to attract buyers as key factors. CEO Stuart Miller suggested that falling interest rates, including the Fed&#39;s recent cut, could help stimulate demand in the struggling housing sector.<\/p>\n<p>Electric vehicle giant <strong>Tesla<\/strong> (<a href=\"\/stock\/TSLA\">TSLA<\/a>) saw its shares rise about 1.7% in early Friday trading after Baird upgraded the stock to an &quot;outperform&quot; rating with a $548 price target. Meanwhile, <strong>Microsoft<\/strong> (<a href=\"\/stock\/MSFT\">MSFT<\/a>) has experienced a puzzling period of flat stock performance since its strong earnings report last quarter. Analysts are exploring various theories for this &quot;unexplainable&quot; dynamic, including potential investor concerns about the future growth of its Azure cloud-computing unit if <strong>OpenAI<\/strong> (which reportedly has a significant cloud deal with <strong>Oracle<\/strong> (<a href=\"\/stock\/ORCL\">ORCL<\/a>)) diversifies its cloud infrastructure, as well as a broader rotation of investors out of the software sector and into semiconductors.<\/p>\n<p>Other notable movers included <strong>Cooper Cos<\/strong> (<a href=\"\/stock\/COO\">COO<\/a>), which closed over 4% higher on Thursday after its board approved a $1 billion increase to its stock buyback program. <strong>CSX Corp<\/strong> (<a href=\"\/stock\/CSX\">CSX<\/a>) also gained more than 2% on Thursday following an upgrade from RBC Capital Markets. On the downside, <strong>FactSet Research Systems<\/strong> (<a href=\"\/stock\/FDS\">FDS<\/a>) plunged over 10% on Thursday after reporting Q4 adjusted EPS below consensus and issuing a weaker-than-expected forecast for 2026 adjusted EPS.<\/p>\n<p>The IPO market also presented some excitement, with <strong>Netskope<\/strong> (<a href=\"\/stock\/NTSK\">NTSK<\/a>) shares surging on Friday, extending gains after its Nasdaq debut on Thursday. The stock was up close to 7% around $24, following an 18% jump above its $19 IPO price on its first trading day. Additionally, nuclear energy firm <strong>Oklo<\/strong> (<a href=\"\/stock\/OKLO\">OKLO<\/a>) continued its remarkable run, hitting an all-time high for the third consecutive day on Friday, soaring nearly 25% to approximately $130. Oklo&#39;s shares have surged about 55% this week and over 500% in 2025, bolstered by Bank of America initiating &quot;buy&quot; coverage.<\/p>\n<h2>Upcoming Market Events and Economic Data<\/h2>\n<p>Looking ahead, the market will be closely watching several key events next week, particularly speeches from various Federal Reserve members now that the blackout period surrounding the recent FOMC meeting has concluded. These speeches could provide further insights into the Fed&#39;s future monetary policy trajectory.<\/p>\n<p>On the economic data front, Friday, September 26, will be a significant day with the release of the Personal Consumption Expenditures (PCE) Price Index and Core PCE, which is the Federal Reserve&#39;s preferred inflation gauge. Also on Friday, the revised University of Michigan Consumer Sentiment Index for September will be published, offering a fresh perspective on consumer attitudes towards the economy and inflation expectations.<\/p>\n<p>Other important economic data points expected throughout the week include various manufacturing and services PMI readings, retail sales figures, and weekly jobless claims. These announcements will provide crucial information on the health of the U.S. economy and could influence market sentiment and trading decisions. No major earnings announcements after Friday&#39;s market close have been reported.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The U.S. stock market concluded a robust week, with major indexes hitting fresh record highs on Friday, September 19, 2025, 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