The Nasdaq notched a record high close on Friday in a mixed trading session, lifted by Microsoft as investors looked ahead to the Federal Reserve's policy meeting next week, when it is widely expected to cut interest rates to counter a slowdown in the jobs market, reports Reuters.
Fueled by Tesla and other technology-related stocks, the Nasdaq added to a rally in the previous session that saw all three indexes hit all-time highs.
Investors are laser-focused on the Fed's meeting on Tuesday and Wednesday. Traders expect the central bank to cut interest rates by 25 basis points after recent data showed longstanding weakness in hiring and easing inflation concerns.
"Because we had such a nice jump in the stock market yesterday, investors are basically catching their breath," said Sam Stovall, chief investment strategist CFRA Research. "There's really not going to be any data between now and Wednesday. It's a sort of wait-and-see attitude."
Microsoft gained 1.8 per cent after the technology giant avoided a possible hefty EU antitrust fine by offering customers reduced prices for Office products excluding Teams.
Tesla jumped 7.4 per cent after board chair Robyn Denholm dismissed concerns that CEO Elon Musk's political activity had hurt sales at the electric-vehicle maker and said the billionaire was "front and center" at the company after several months at the White House. With Friday's surge, Tesla shares remain down 2 per cent in 2025.
Declines in Goldman Sachs and paint-maker Sherwin-Williams kept the Dow Jones Industrial Average in negative territory. The S&P 500 declined marginally.
The University of Michigan's survey showed US consumer sentiment fell for a second straight month in September as consumers saw rising risks to business conditions, the labor market and inflation.
The S&P 500 declined 0.05 per cent to end the session at 6,584.29 points.
The Nasdaq gained 0.45 per cent to 22,141.10 points, while the Dow Jones Industrial Average declined 0.59 per cent to 45,834.22 points.
