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Wall Street Rallies to Record Highs Ahead of Anticipated Fed Rate Cut

Wall Street Rallies to Record Highs Ahead of Anticipated Fed Rate Cut. Source: AP Photo/John Minchillo

U.S. stock futures remained steady on Tuesday evening as Wall Street extended its record-breaking streak for a third consecutive session. Investors stayed cautious yet optimistic ahead of the Federal Reserve’s widely expected interest rate cut, which could provide fresh momentum for the markets.

As of 21:18 ET (01:18 GMT), S&P 500 Futures edged up 0.1% to 6,929.25 points, Nasdaq 100 Futures gained 0.1% to 26,185.75, while Dow Jones Futures slipped 0.1% to 47,842.0 points. During the regular trading session, all three major U.S. indexes closed at record highs — the S&P 500 climbed 0.2%, the Dow Jones Industrial Average added 0.3%, and the NASDAQ Composite jumped 0.8%.

The continued rally was fueled by rising hopes for a U.S.-China trade breakthrough and growing confidence that the Federal Reserve will implement a quarter-point rate cut to stimulate economic growth. With the Fed’s two-day policy meeting nearing conclusion, investors are closely watching for signals on the central bank’s future stance amid lingering concerns over muted inflation and disruptions from the recent U.S. government shutdown. A dovish tone from the Fed could further strengthen market sentiment and support risk assets.

Adding to the optimism, news emerged that President Joe Biden and Chinese President Xi Jinping are expected to meet later this week to finalize a framework aimed at averting new tariffs and trade restrictions — a development that could bolster global market confidence.

On the corporate front, NVIDIA (NASDAQ: NVDA) shares surged nearly 5% after announcing plans to build seven new AI supercomputers for the U.S. Department of Energy. The week remains earnings-heavy, with Alphabet (GOOGL), Meta Platforms (META), and Microsoft (MSFT) set to report Wednesday, followed by Apple (AAPL) and Amazon (AMZN) on Thursday.

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