Nasdaq and S&P 500 Reach Record Highs Amid Speculation of Interest Rate Cuts

Wall Street stock indexes closed higher on Friday, with Nasdaq and S&P 500 reaching record highs. Weak U.S. labor market data raised expectations for interest rate cuts as early as September. The rally was led by gains in major tech companies such as Microsoft and Meta Platforms.

Wall Street stock indexes ended Friday on a high note as the tech-heavy Nasdaq and benchmark S&P 500 posted record gains. New data indicating U.S. labor market weakness heightened expectations for interest rate cuts as soon as September.

The surge was propelled by strong performances from megacap stocks, notably Microsoft, which climbed nearly 1.5% to record levels. Meta Platforms also achieved an all-time closing high, soaring around 5.9% and pushing the information technology sector to unprecedented heights.

S&P 500 communication services emerged as the best-performing sector, hitting its highest mark since 2000. The Dow Jones Industrial Average rose 67.87 points, or 0.17%, to 39,375.87. The S&P 500 added 30.17 points, or 0.54%, reaching 5,567.19, while the Nasdaq Composite advanced 164.46 points, or 0.90%, to 18,352.76.

(With inputs from agencies.)