U.S. stocks ended higher on Friday, with all three major indexes setting record closing levels for the second straight day. Trading activity surged to its highest level since April. Strong results from FedEx and a boost for Apple helped lift the market, while investors continued to weigh the Federal Reserve’s policy outlook.
Indexes Push Higher
The Dow gained 0.37%, the S&P 500 rose 0.49%, and the Nasdaq advanced 0.72%. For the week, the S&P 500 added 1.2%, the Nasdaq climbed 2.2%, and the Dow was up 1.05%.
Trading volume hit 27.8 billion shares, well above the recent daily average of 17.4 billion. Activity was last this strong in April, when markets swung on trade policy headlines.
Earnings and Stock Movers
FedEx shares climbed 2.3% after posting profit and revenue that beat estimates. Cost cuts and strong U.S. deliveries offset weakness abroad. Apple gained 3.2% following a price target increase from J.P. Morgan. Palantir and Oracle also advanced, lifting the S&P technology sector by 1.19%.
Not all sectors joined the rally. Energy stocks weighed on the S&P 500, and homebuilder Lennar fell 4.2% after a soft outlook for fourth-quarter deliveries. Meanwhile, Paramount Skydance rose nearly 6% after new reports about its interest in Warner Bros Discovery, which also gained.
Fed Outlook and Market Sentiment
Investors are still digesting the Fed’s first rate cut of 2025, announced earlier this week. Officials signaled that further easing could follow. Scott Ladner, CIO at Horizon Investments, said a softer inflation target could fuel growth: “That’s good for stocks if the Fed is willing to run hot.”
Small-cap stocks slipped, with the Russell 2000 down 0.71% after briefly touching an intraday record. Analysts noted that small caps tend to benefit more when interest rates fall.
Politics and Global Trade
President Trump and China’s Xi Jinping spoke by phone for the first time since June. Trump said the two leaders made progress on a TikTok deal and plan to meet in South Korea next month.
On Capitol Hill, the Senate rejected a short-term funding bill, raising the risk of a government shutdown.
Market Breadth
Advancing issues lagged decliners on both the NYSE and Nasdaq. The S&P 500 logged 30 new highs and 17 new lows, while the Nasdaq recorded 151 new highs and 54 new lows.
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