NextFin news, On Friday, September 19, 2025, the Nasdaq 100 index reached new record highs, gaining more than 1.7% over the past four trading sessions. This upward momentum followed the Federal Reserve's announcement on Wednesday of a 25 basis point interest rate cut and indications of additional easing by year-end.
The Federal Reserve's decision to lower the federal funds target rate and signal up to 50 basis points of further cuts was aimed at supporting the labor market amid persistent inflation risks. Fed Chair Jerome Powell highlighted concerns about inflation but maintained a cautious stance on deeper policy easing.
Investor optimism was bolstered by strong performances in semiconductor stocks, with Intel surging over 25% after Nvidia agreed to invest $5 billion in the company and announced plans to co-develop chips for PCs and data centers. Other chipmakers such as KLA Corp, ASML Holding, and Applied Materials also posted gains exceeding 6%.
U.S. economic indicators released on Thursday showed a stronger-than-expected labor market, with weekly initial unemployment claims falling by 33,000 to 231,000, below the forecast of 240,000. Additionally, the Philadelphia Fed business outlook survey rose to an eight-month high of 23.2, surpassing expectations.
Despite the positive stock market reaction, bond yields rose, with the 10-year Treasury note yield reaching a two-week high of 4.14%, reflecting investor concerns about inflation and the Fed's hawkish comments.
Other major U.S. stock indexes also posted record highs on Thursday, including the S&P 500 and Dow Jones Industrial Average. The S&P 500 rose by 0.67%, and the Dow increased by 0.46%, supported by the broader market optimism following the Fed's policy update.
Global markets showed mixed results, with the Euro Stoxx 50 climbing to a 3.5-week high, Japan's Nikkei 225 reaching a new record, while China's Shanghai Composite declined from a 10-year peak.
The Federal Open Market Committee is scheduled to meet again on October 28-29, with markets currently pricing in an 86% chance of another 25 basis point rate cut at that meeting.
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