[New York Stock Exchange] Closes Higher on Rate Cut Hopes... Nasdaq Hits Record High

On September 8 (local time), all three major U.S. stock indexes closed higher on the New York Stock Exchange, with the Nasdaq index reaching an all-time high, driven by expectations of an interest rate cut.

On this day, the blue-chip Dow Jones Industrial Average closed at 45,514.95, up 114.09 points (0.25%) from the previous trading day. The large-cap S&P 500 index finished at 6,495.15, up 13.65 points (0.21%). The tech-heavy Nasdaq index closed at 21,798.699, up 98.311 points (0.45%).

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Since the release of weaker-than-expected August nonfarm payroll data on September 5, expectations for an interest rate cut have been rising. The market is now awaiting next week's Federal Open Market Committee (FOMC) meeting of the U.S. Federal Reserve, closely watching the August Producer Price Index (PPI) on September 10 and the August Consumer Price Index (CPI) on September 11.

Ahead of the FOMC, Federal Reserve officials have entered a "blackout" period, refraining from public comments. According to CNBC, the market expects the Fed to cut rates this month, hold steady in October, and resume rate cuts in December.

Ross Mayfield, investment strategist at Baird Private Wealth Management, said, "Right now, we're in a sort of catalyst vacuum," and added, "Since the market is hitting all-time highs during a seasonally slow period, some downward movement could occur." He continued, "Unless an unexpected event related to tariffs or trade arises, the market will be waiting for the CPI."

According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market on this day sees an 88.4% probability that the Fed will cut the current 4.25-4.5% rate by 0.25 percentage points, and an 11.6% probability of a 0.5 percentage point cut.

By sector, utilities fell by 1.07%, and real estate declined by 0.68%. Consumer discretionary rose by 0.53%, and technology increased by 0.67%.

Major big tech (large information technology companies) stocks showed mixed performances. Broadcom shares rose by 3.21%, Nvidia by 0.77%, Amazon.com by 1.51%, and Microsoft by 0.65%. In contrast, Apple (-0.76%), Meta (-0.02%), Alphabet, the parent company of Google (-0.34%), and Tesla (-1.27%) all declined.

Robinhood and AppLovin, both scheduled to be included in the S&P 500 starting September 22, surged by 15.83% and 11.54%, respectively.

Aerospace component maker EchoStar soared by 19.91% after agreeing to sell a $17 billion wireless spectrum license to SpaceX. Meanwhile, telecommunications stocks such as AT&T (-2.33%), Verizon (-2.39%), and T-Mobile (-3.9%) all declined.

U.S. Treasury yields fell. The yield on the benchmark 10-year Treasury note dropped by 4.2 basis points (1bp = 0.01 percentage points) from the previous day to 4.044%, while the yield on the policy-sensitive 2-year Treasury note decreased by 1.4 basis points to 3.493%.