NextFin news, On Friday, September 12, 2025, U.S. stock markets closed at record highs, driven by strong performances from technology and growth stocks including Nvidia, Meta Platforms, and Tesla. This rally comes as investors prepare for the Federal Reserve's policy meeting set for Tuesday and Wednesday, September 16-17, 2025, in Washington, D.C.
The Dow Jones Industrial Average rose 0.95%, the S&P 500 increased by 1.6%, and the Nasdaq Composite gained 2% during the week ending Friday. The rally was broad-based, with AI-related stocks leading the advance. Nvidia's stock jumped 6.5% to $177.80, regaining its 50-day moving average and forming a flat base with a buy point at $184.48. Meta Platforms edged up 0.4% to $755.59, maintaining a consolidation above its 50-day line as it prepares for its annual Connect developers conference starting Wednesday, September 17, where new augmented reality products and AI integrations are expected to be unveiled.
Tesla's shares surged 12.85% to $395.94, marking its best weekly gain since late April. The electric vehicle maker's stock raced through its buy zone, surpassing the $367.71 consolidation buy point. Despite the lack of specific news driving Tesla's rise, investors responded to its bullish technical momentum.
Other notable stocks included GE Vernova, which rose 7.5% to $625.55, Shopify, Howmet Aerospace, and Rocket Lab, the latter of which soared 16.4% to $53.36, breaking out from a cup-with-handle base. These stocks are featured on various market leaderboards and watchlists such as the IBD 50 and SwingTrader.
The Federal Reserve meeting scheduled for Tuesday and Wednesday, September 16-17, 2025, is the focal point for investors this week. Market consensus expects a quarter-point interest rate hike on Wednesday afternoon, with a total of 75 basis points increase anticipated for the year. Fed Chair Jerome Powell is expected to provide dovish signals regarding future rate cuts, which markets predict will begin in 2026. However, some uncertainty remains as political developments could influence Federal Open Market Committee (FOMC) membership and policy direction in the coming year.
Futures for the Dow Jones, S&P 500, and Nasdaq 100 opened Sunday evening, September 14, 2025, at 6 p.m. ET, setting the tone for the trading week ahead. Investors are advised to monitor overnight futures activity, though it may not directly translate into the regular trading session.
Economic data released last week, including inflation figures, reinforced expectations for the Fed's rate cut outlook. Treasury yields fell slightly, with the 10-year Treasury yield dropping three basis points to 4.06%. U.S. crude oil futures rose 1.3% to $62.69 per barrel.
Exchange-traded funds (ETFs) focused on growth and technology sectors also saw gains. The Innovator IBD 50 ETF jumped 4.2%, the iShares Expanded Tech-Software Sector ETF rose 3.3%, and the VanEck Vectors Semiconductor ETF increased 3.8%, with Nvidia as a dominant holding. ARK Innovation ETF and ARK Genomics ETF also posted gains, with Tesla as the top holding across ARK Invest funds.
Investors are advised to remain heavily invested but cautious, avoiding buying stocks that are extended beyond their buy points. The market's direction will likely be influenced heavily by the Federal Reserve's decisions and communications this week.
Source: Investor's Business Daily, September 12, 2025.
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