US stocks rose on Friday as investors digested the Federal Reserve’s first interest rate cut since December. The move set the tone for a week of gains across major US indexes.
The Dow Jones Industrial Average advanced 172 points, or 0.37%, closing at 46,315.27, a fresh record high. The S&P 500 added 0.49% to finish at 6,664.36, while the Nasdaq Composite climbed 0.72% to 22,631.48.
The small-cap Russell 2000 slipped 0.7% on Friday but still managed a strong weekly performance after touching an all-time high earlier in the session.
Weekly performance and drivers
For the week, the S&P 500 and Dow gained 1.2% and 1%, respectively, while the Nasdaq surged 2.2%. The Russell 2000 also rose 2.2%, marking its seventh consecutive weekly advance.
Apple led the charge on Friday, rising 3.2% as the latest iPhone went on sale globally, pushing the company’s market value above US$3.6 trillion. Tesla shares also gained more than 2.2%.
Technology remained the standout, with Oracle rallying on reports of talks with Meta Platforms for a US$20bn cloud-computing deal.
Australian market outlook
The positive momentum on Wall Street is expected to carry into local trade. Futures for the S&P/ASX 200 are pointing 24 points higher, or 0.3%, at 8852, extending Friday’s rally.
The Australian market has fallen for three consecutive weeks amid profit-taking following the August reporting season, but US rate cuts and a rebound in global tech could reignite local sentiment.
Reserve Bank governor Michele Bullock addresses parliament on Monday, though she may avoid discussing interest rates ahead of the next policy meeting on September 30.
The Australian dollar has slipped below US66¢ as the greenback regained ground, while stronger gold and iron ore prices are set to provide a lift to local miners.
