Nasdaq Composite: Broadcom Powers Tech Surge to Record High on Rate Cut Forecast

Nasdaq Hits New Record as Traders Bet on Larger Fed Rate Cut

U.S. equities edged higher on Monday as traders increased bets on a September rate cut following weak labor market data. The Nasdaq led the gains, reaching a new record intraday high, with the broader market lifted by strength in technology stocks and easing rate expectations.

At 17:32 GMT, the Nasdaq was up 114.954 points (0.53%) at 21,815.342, marking a fresh record. The S&P 500 rose 14.64 points (0.23%) to 6,496.14, while the Dow Jones Industrial Average added 21.52 points (0.05%) to reach 45,422.38.

Is the Fed Eyeing a 50-Basis Point Cut Next?

Friday’s nonfarm payrolls report has triggered a shift in rate expectations. Markets are still pricing in a 25-basis point cut in September, but a 50-bps cut is now back on the table with a 9.5% probability—up from 0% prior to the labor data, according to the CME FedWatch Tool.

Brokerages are adjusting accordingly. Standard Chartered now sees a 50-bps cut next meeting, while Barclays expects three 25-bps cuts in 2025, up from two previously. Traders will be watching this week’s inflation reports and the Bureau of Labor Statistics’ benchmark payroll revision for further confirmation.

With the Federal Reserve in a pre-meeting blackout, these economic releases will be the market’s only guide.

Broadcom Extends Gains, Drives Tech Higher

Chipmaker Broadcom climbed another 4%, building on Friday’s 9.4% surge. The stock has advanced in ten of the past eleven sessions, helping lift the information technology sector by 1%. Meanwhile, the real estate sector slipped 1.2%, under pressure as rate-sensitive areas gave back some of last week’s gains.

Elsewhere, Robinhood rose 14.5% and AppLovin gained 11.4% after news of their upcoming inclusion in the S&P 500. EchoStar jumped 13.2% following its $17 billion wireless spectrum deal with SpaceX. Telecom names underperformed, with AT&T, Verizon, and T-Mobile down as much as 3%.

Inflation and Labor Data Will Guide Next Market Move

With no Fed commentary expected before the September 16–17 meeting, traders are watching for any economic signals that could justify a larger rate cut. A soft inflation print or downward payroll revisions would likely fuel the current rally. While September is historically weak for equities, strong tech leadership and dovish rate expectations are keeping momentum intact—for now.

More Information in our Economic Calendar.