U.S. stocks edged back from their all-time high as they closed out a second straight winning week with gains of more than 1.6 per cent. The Federal Reserve’s first meeting of 2025 in the coming week stands to test the resurgence in U.S. stocks as investors gauge the extent of more equity-friendly interest rate cuts in the months ahead. President Donald Trump has reiterated plans to cut taxes and regulations since being sworn in. He has also somewhat eased worries about tariffs, suggesting his administration won’t immediately resort to steep levies. This boosted a range of currencies against the dollar yesterday.
A strong start to the earnings season has also helped lift spirits on Wall Street, though results next week from big tech names-Microsoft, Meta, Tesla and Apple-will put the rally to the test.
The S&P 500 fell 0.3% to 6,101 yesterday, a day after setting a record. The Dow Jones Industrial Average dropped 0.3% to 44,424 and the Nasdaq composite fell 0.5% to 19,954. Worries about profitability at Texas Instruments hurt stocks across the semiconductor industry.
The Dow Jones Industrial Average fell 140.82 points, or 0.3%, to 44,424.25. The Nasdaq composite fell 99.38 points, or 0.5%, to 19,954.30.