Wall Street Soars: S&P 500 and Nasdaq Reach New Heights Amid Fed Rate Cut Speculation

Wall Street indices, including the S&P 500 and the tech-focused Nasdaq, surged to record intraday highs on Friday. Investors are betting on further interest rate cuts from the Federal Reserve and successful trade negotiations with U.S. trade partners, fueling this optimism.

The benchmark S&P 500 and Nasdaq both increased by about 0.4%, surpassing previous peaks set earlier this year. Tech giants like Nvidia, Amazon, and Apple bolstered the rise, with Nvidia hitting new record highs. Market sentiment was also swayed by a report showing a drop in U.S. consumer spending, though inflation trends seem to support the Fed's current stance.

Attention is increasingly turning to the Federal Reserve's forthcoming decisions, particularly amidst reports of potential leadership changes. In trade developments, the U.S. reached an agreement with China to expedite rare-earth shipments, further boosting the upbeat market mood as key trading deadlines loom. The Dow Jones Industrial Average also showed gains, promising a strong weekly finish for major indices.

(With inputs from agencies.)