Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., September 3, 2025.
Jeenah Moon | Reuters
Stocks rose marginally on Friday following a winning session that sent indexes to new records as the Federal Reserve’s decision to cut interest rates set in investors’ minds.
The S&P 500 gained 0.1%, while the Nasdaq Composite advanced 0.2%. The Dow Jones Industrial Average added 2 points, hovering above the flatline.
The small-cap Russell 2000 dipped 0.7%, taking back some gains this week after the index touched a fresh record high earlier in the session.
Apple led the way higher, rising about 2%, as the company’s latest iPhone went on sale around the world. Tesla shares were also up more than 1.5%.
Wall Street is on pace to post strong weekly gains. The S&P 500 and Dow are up 0.8% and 0.7%, respectively, while the Nasdaq is up 1.7%. The Russell 2000 has outperformed, rising more than 2%, and on pace for its seventh weekly advance.
Stocks got a boost this week after the Fed lowered its benchmark overnight lending rate by a quarter percentage point, its first rate reduction since December. The move was widely expected by markets, but stocks had a volatile session on the back of the decision after Fed Chair Jerome Powell in his press conference characterized the decision as a “risk management cut.”
“While September has historically delivered pullbacks, this year’s market has defied that pattern — climbing 35% since March with strong technical and fundamental tailwinds,” said Mark Hackett, chief market strategist at Nationwide. “Still, with the S&P 500 trading at 22x forward earnings and volatility suppressed, a period of consolidation or choppiness would be a normal and healthy development.”