On September 15, 2025, U.S. stocks surged to new record highs as investor sentiment remained buoyant ahead of a critical Federal Reserve meeting scheduled for September 17. The S&P 500 index closed up nearly 0.5%, surpassing the 6,600 mark for the first time in history, finishing at 6,615.28. The tech-heavy Nasdaq Composite index followed suit, jumping approximately 0.9% to seal its sixth consecutive record close at 22,348.75.
The Dow Jones Industrial Average also displayed modest gains, edging up by more than 0.1% to close at 45,834.22.
As traders eagerly anticipate the Federal Open Market Committee (FOMC) meeting, a significant 96% probability of a 25 basis point interest rate cut is being priced into the market. The Fed's decision will be crucial in determining whether the recent rally can continue or if it will trigger a 'buy the rumor, sell the news' scenario, as explained by Chris Larkin from E*TRADE.
The driving force behind the market's ascent was predominantly the 'Magnificent Seven' tech stocks. Alphabet (GOOGL) led these gains, rising by nearly 4% to become the first publicly traded company to reach a market capitalization of $3 trillion. Tesla (TSLA) soared more than 3% following news that CEO Elon Musk acquired $1 billion worth of shares, effectively eliminating its year-to-date losses.
Oracle (ORCL) shares also rose as negotiations on a potential TikTok acquisition progressed positively, amidst the backdrop of ongoing U.S.-China trade talks.
While the major indexes performed well, challenges remain. The 30-year Treasury yield decreased to 4.65%, and inflationary pressures continue to creep into economic discussions, reminiscent of past high-inflation periods. Specifically, Apollo Global Management warned that easing monetary policies now might lead to a resurgence of inflation akin to the patterns observed in the 1970s.
In the cryptocurrency market, Bitcoin (BTC-USD) experienced slight fluctuations, trading above $115,500 after recent gains. However, other cryptocurrencies faced declines, with Ethereum (ETH-USD) down over 1% and Solana (SOL-USD) down by 4%.
Gold prices also hit new highs, surging nearly 1% to just above $3,670 an ounce due to investor expectations of a rate cut by the Federal Reserve, which traditionally boosts interest in non-yielding assets like gold.
Overall, the markets are approaching a crucial juncture as they await the Fed's decisions, with investor sentiment cautiously optimistic yet underpinned by significant economic considerations.