Key Players and Context
The major indices of Wall Street closed higher on Friday and also registered weekly gains, driven by the first rate cut by the Fed in 2025 and signs of further easing in monetary policy. Among the notable performers was FedEx, which saw a surge after reporting better-than-expected quarterly earnings and revenues.
FedEx’s stock price rose following its report on Thursday, which showed profits and revenues exceeding market estimates. The company benefited from cost reductions and strong domestic shipments, which helped offset the weakness in international volumes. Meanwhile, Apple also gained after J.P. Morgan increased its price target.
Market Performance
The S&P 500 and the Nasdaq continued their third consecutive week of gains, fueled by the Fed’s first rate cut in 2025 and indications of further monetary policy relaxation. Additionally, renewed optimism surrounding AI-linked stock trading also contributed to the upward trend.
- S&P 500 gained 32.40 points, or 0.49%, to close at 6,664.36 points.
- Nasdaq Composite added 160.75 points, or 0.72%, to finish at 22,631.48 units.
- Dow Jones Industrial Average increased by 172.85 points, or 0.37%, to settle at 46,315.27 points.
However, the Russell 2000 index of small-cap companies declined after briefly hitting an intraday record high. The index closed at a record high on Thursday, its first since November 2021.
Political Developments
In a telephone conversation, U.S. President Donald Trump claimed to have made progress on various issues, including trade and the approval of a TikTok deal, with his Chinese counterpart Xi Jinping.
Government Shutdown Update
The U.S. Senate rejected a temporary bill that would have prevented a government shutdown on October 1, as Democrats withdrew their support for the legislation and demanded greater healthcare spending.
September Market Performance
Despite the recent gains, Wall Street’s major indices have been in positive territory throughout September, a traditionally unfavorable month for U.S. equities. The S&P 500 has averaged a loss of 1.4% since 2000 in September, according to data compiled by LSEG.
Key Questions and Answers
- Q: Who are the key players mentioned in this article? The key players mentioned are FedEx, Apple, the Federal Reserve (Fed), U.S. President Donald Trump, and the U.S. Senate.
- Q: What drove the gains on Wall Street this week? The gains were driven by the first rate cut by the Fed in 2025, signs of further monetary policy easing, and renewed optimism surrounding AI-linked stock trading.
- Q: How did FedEx perform recently? FedEx reported better-than-expected quarterly earnings and revenues, with cost reductions and strong domestic shipments helping offset weak international volumes.
- Q: What is the status of the U.S. government shutdown? The U.S. Senate rejected a temporary bill that would have prevented a government shutdown on October 1, as Democrats demanded greater healthcare spending.
- Q: How has September historically impacted U.S. equities? September is traditionally considered a weak month for U.S. equities, with the S&P 500 averaging a loss of 1.4% since 2000 in this month.
