Market Soars at Fed Week Commencement: Current Stock Market Status
In a day filled with significant developments, the US stock market closed at record highs on Friday. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted new record closing highs, with the Dow Jones inching up by 0.1% to close at 45,883. The S&P 500 saw a 0.5% increase, closing at 6,615, while the Nasdaq Composite surged 0.9% to finish at 22,348.
One of the key events of the day was the meeting between US President Donald Trump and Chinese President Xi Jinping to discuss the conditions of the TikTok deal. This was confirmed by US Treasury Secretary Janet Yellen and reported in several sources. Trump is expected to finalize the agreement during the meeting. In a post on his Truth Social account, Trump stated that the trade meeting is going well.
The trade talks between US and China officials are ongoing, with Treasury Secretary Yellen expressing concerns about the timing of the Nvidia investigation during the negotiations. Nvidia shares slipped 0.04% due to China's accusation of violating the country's anti-monopoly law in its 2020 acquisition of Mellanox. Nvidia, however, maintains that it complies with the law and will continue to cooperate with relevant government agencies.
In other news, President Trump stated that interest rates should be cut now and bigger than previously planned. According to CME FedWatch, there is a 96% chance the Federal Open Market Committee will cut rates by a quarter-percentage point. However, senior U.S. economist at Barclays, Jonathan Millar, doubts the FOMC will lower the federal funds rate by 50 basis points.
Elon Musk, the CEO of Tesla, made headlines with his largest insider stock acquisition ever. Musk bought 2.57 million Tesla shares for roughly $1 billion. This move comes after Tesla announced a new pay plan for Musk that ensures he remains CEO of Tesla until at least 2030. Wedbush analyst Daniel Ives reiterated his Outperform (Buy) rating and $500 price target on Tesla, believing that Tesla and Musk are entering a crucial growth phase with the AI Revolution and the Robotaxi opportunity.
Tesla was another notable mover, with a 3.6% increase. This is Musk's largest purchase since 2020, according to CNBC. The strong performance of Tesla, along with the positive news regarding the TikTok deal and interest rates, contributed to the overall positive sentiment in the market.
As the week comes to a close, the US stock market ends on a high note, with all three major indices posting record closing highs. The ongoing trade talks between the US and China, along with the potential for further interest rate cuts, will continue to be closely watched in the coming days.
