Market Records New Highs Amid Fed Easing Anticipation

The S&P 500 and Nasdaq indexes achieved new record highs for the second consecutive day, fueled by optimism that the Federal Reserve may soon begin a monetary easing cycle. Despite this upbeat trend, there was noticeable weakness in several major technology stocks following robust gains previously.

Investor relief was palpable as U.S. tariffs have yet to significantly affect headline consumer prices, although concerns about trade uncertainties linger. Large technology stocks such as Nvidia, Alphabet, and Microsoft experienced declines as investors sought fresh avenues for growth.

Meanwhile, Apple gained 1.6% on reports of its expansion into AI-driven technologies. Traders are anticipating a possible interest rate cut of 25 basis points. Healthcare stocks rose, reflecting a shift as the market evaluates the implications of tariffs on inflation and interest rate decisions.