Index Performance
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S&P 500: +1.2% to ~6,664, setting a new record high.
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Nasdaq Composite: +2.2% to ~22,518, also a record close.
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Dow Jones Industrial Average: +1.0% to ~46,170.
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Russell 2000: +~2.0% on the week, continuing its outperformance since the Fed’s policy pivot.
Federal Reserve & Macro
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Fed cut the federal funds rate by 25 bps, its first cut in 2025, bringing the target range to 4.75%–5.00%.
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Policy projections indicated potential additional cuts in October and December.
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Jobless claims: 231,000, better than the ~246,000 expected.
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Philadelphia Fed Index: rebounded to 23.2 in September from -0.3 in August.
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Treasury yields ended lower, with the 10-year yield near 4.01%.
Sector Moves
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Technology/Semis: Strongest sector; semiconductors led by Intel (INTC) +22.8% after Nvidia (NVDA) disclosed a $5B investment.
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Industrials/Transports: FedEx (FDX) +5% post-earnings beat and raised guidance.
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Housing: Lennar (LEN) -4–5% after Q3 revenue miss and weak guidance.
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Materials: Nucor (NUE) fell after lowering profit outlook.
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Utilities: Notched weekly gains as yields softened.
Corporate Highlights
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INTC: Surged nearly 23% on Nvidia’s stake, lifting broader semis (AMAT, LRCX, MU all +4–6%).
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TSLA: Upgraded by Baird to “Outperform,” supported by optimism around AI/robotaxi initiatives.
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AAPL: Rose ~2–3% on iPhone 17 launch strength and price target hikes.
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FDX: Beat Q1 FY26 estimates with EPS $3.76 vs. $3.62 est., revenue $21.9B vs. $21.65B est.
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LEN: Reported EPS $3.63 vs. $3.55 est., revenue $9.08B vs. $9.21B est., driving stock lower.
Fund Flows & Sentiment
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Despite weekly gains, U.S. equity funds saw outflows exceeding $5B, showing investor caution around elevated valuations.
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Volatility remained contained; VIX closed below 13.
Geopolitical / Trade
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A Trump–Xi phone call suggested progress on U.S.–China trade discussions and TikTok’s U.S. operations, helping sentiment in tech and communications stocks.
Weekly Summary
Equities rallied to record highs on the back of the Fed’s first rate cut of 2025 and renewed tech leadership. The Nasdaq gained 2.2% and the S&P 500 rose 1.2%, with semiconductors driving strength, while housing and select materials lagged. Strong corporate catalysts, better-than-expected macro data, and easing trade tensions offset concerns over equity outflows and valuations.