Market Rally Driven by Rate-Cut Expectations and Tech Momentum

U.S. equities closed mixed on Friday, with the S&P 500 and Dow Jones Industrial Average dipping slightly as investors locked in profits from recent gains. The Nasdaq-100, however, climbed to its fourth consecutive record high, buoyed by a rally in large-cap tech stocks. All three major indexes posted strong weekly performances, fueled by growing confidence in imminent Federal Reserve rate cuts and sustained momentum in the AI sector.

The Dow ROSE 0.95% for the week, while the S&P 500 gained 1.59%—marking its fifth positive week in six. The Nasdaq-100 outperformed with a 1.86% advance, extending its winning streak to two weeks. Thursday's session saw a rare simultaneous record close for all three benchmarks, a phenomenon last observed in December 2024. The Dow's breach of 46,000 and the S&P 500's third straight record high underscored the bullish sentiment before Friday's pullback.