S&P 500 Surges Amid Fed Rate Cut Speculation, Microsoft Leads Gains

The S&P 500 and Nasdaq soared to record highs on Friday, driven by Microsoft's performance, as investors focused on the Federal Reserve's upcoming policy meeting. The central bank is expected to cut interest rates to counter job market slowdowns. The Dow dipped slightly, maintaining a mixed market sentiment.

Traders are keenly watching the Fed's meeting this week. A 25 basis point rate cut is anticipated due to weaknesses in hiring and easing inflation. According to Sam Stovall, CFRA Research's Chief Investment Strategist, investors are in a 'wait-and-see' mode due to limited data availability until Wednesday.

Microsoft rose 2.1%, avoiding a heavy EU antitrust penalty by adjusting Office product pricing. Tesla shares jumped nearly 7% as board chair Robyn Denholm dismissed concerns about CEO Elon Musk's political involvement affecting sales. The energy from tech and media sectors balanced declines in others, keeping market metrics on a growth trajectory.

(With inputs from agencies.)