NASDAQ Index, SP500, Dow Jones Forecasts – Bulls Charge Ahead as Fed Rate Cut Bets Fuel Record Highs

Stocks Break Records as Fed Rate Cut Bets Gain Steam

Wall Street surged to new highs on Thursday, with the S&P 500, Nasdaq, and Dow Jones all closing at record levels. Traders responded positively to inflation data that, while mixed, reinforced expectations that the Federal Reserve will lower interest rates at next week’s meeting.

S&P 500 Closes at All-Time High, Targets 6,600

The S&P 500 gained 0.85% to end at 6,587.47, setting a new record close after reaching an intraday high of 6,592.89. The index is now firmly above its 50-day moving average at 6,377.8, with recent pullbacks finding support near 6,360.58.

Sector performance was broad-based, led by materials (+2.14%), health care (+1.73%), and consumer discretionary (+1.7%). Mega-cap stocks like Apple (+1.43%) and Microsoft (+0.13%) also supported the upside, although Nvidia slipped slightly (-0.08%). The 0.4% monthly rise in August CPI came in hotter than expected, but annual and core readings matched forecasts, keeping rate cut bets intact.

Technically, the S&P 500 remains in a strong uptrend, and a clean break above 6,600 could open the door toward 6,700 in the near term.

Nasdaq Rallies on Rate Cut Bets, Closes Above 22,000

The Nasdaq Composite rose 0.72% to settle at 22,043.07, also notching a record close. The index stayed well above its 50-day moving average of 21,198.2 and saw strong follow-through from recent support at 21,033.05.

While gains were more moderate in tech, AI and chip names held steady. Nvidia traded flat, while Amazon dipped 0.16%. Gains in Salesforce (+1.53%) and Apple helped offset weakness in names like Cisco (-0.65%).

With producer prices declining and unemployment claims unexpectedly rising to 263,000—the highest since 2021—markets are increasingly pricing in at least a 25 basis point cut. Some are even eyeing a larger move, depending on upcoming Fed commentary.

Dow Breaks Above 46,000, Led by Financials and Industrials

The Dow Jones Industrial Average surged 617 points, or 1.36%, to close at a record 46,108.00. It cleared the key 45,770 resistance level, supported by gains in industrials and financials.

JPMorgan (+1.67%), Goldman Sachs (+1.97%), and Caterpillar (+2%) led the charge, while Boeing fell 3.31% after fresh supply chain concerns. The Dow remains comfortably above its 50-day SMA at 44,779.5, and the breakout above August highs confirms bullish momentum.

Fed Decision Looms as Bulls Test Key Resistance

Markets are betting heavily on a rate cut at the Fed’s September 17 meeting, with falling Treasury yields and soft job data reinforcing the outlook. While inflation remains sticky on a monthly basis, the trend appears manageable.

With all three indices closing at all-time highs, momentum is bullish into next week. A dovish Fed tone and supportive macro data could push equities further, but traders should watch for profit-taking near technical resistance. For now, the rally remains intact.

More Information in our Economic Calendar.