US stocks end mixed but end the week near record highs after the Fed’s first rate cut in four years

• U.S. stocks were mostly lower on Friday, although the Dow Jones posted gains to close at a record high.

• The Federal Reserve’s first rate cut since 2020 added to the week’s gains.

• Investors see the Fed’s easing as a positive sign for the economy and the stock market.

U.S. stocks closed mostly lower on Friday, but ended the week higher by just over 1% for the S&P500, Nasdaq100And Dow Jones Industrial Average.

The Dow Jones traded slightly higher during Friday’s session, setting a new record to end the week.

The anticipation and delivery of the The Federal Reserve’s first rate cut since 2020 contributed to this week’s profit.

The Fed has implemented a massive 50 basis point rate cut to “recalibrate” monetary policy, as Fed Chairman Jerome Powell put it nine times during his FOMC speech on Wednesday.

Investors saw the move as a guarantee that the U.S. economy is on track for a soft landing as inflation continues to cool and the labor market normalizes.

US stocks rose dramatically on Thursday after falling slightly on Wednesday as investors had more time to digest the Fed’s interest rate decision.

Going forward, more gains should be in store for the stock market, according to Raymond James CIO Larry Adam.

“The combination of Fed easing and a soft landing should provide support for risky assets (particularly equities). Historically, Fed easing cycles have been positive for the stock market. In fact, the S&P 500 is up ~5. % on average in the 12 months following the first Fed rate cut,” Adam said in a note on Friday.

The S&P 500 and the Dow Jones Industrial Average both hit record highs on Thursday. But those record highs could become a problem if the economy weakens, according to Adam.

“With the S&P 500 rising to record levels and currently at one of the most expensive valuations (23.5 LTM price-to-earnings) we have seen in history, there is not much room for disappointment if the soft landing scenario were to falter,” Adam said.

Here’s where the US indexes stood at 4pm on Friday:

Here’s what else happened today:

The story continues

In commodities, bonds and crypto:

• West Texas average Crude oil fell 0.10% to $71.09 per barrel. Brent crude oilthe international benchmark, fell 0.39% to $74.59 per barrel.

• Gold rose 1.17% to $2,645.30 an ounce.

• The yield on ten-year government bonds rose by 2 basis points to 3.733%.

• Bitcoin fell 0.11% to $62,894.

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