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Market Overview
U.S. stock index futures were little changed on Friday, stabilizing near record highs as traders absorbed the Federal Reserve’s first rate cut since December. At 06:00 ET (10:00 GMT), Dow Jones Futures added 10 points (0.1%), S&P 500 Futures rose 3 points (0.1%), and Nasdaq 100 Futures climbed 6 points (0.1%).
On Thursday, all three major Wall Street indices — the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite — closed at record highs. The Dow and S&P 500 are both on track to end the week 0.7% higher, while the Nasdaq has advanced 1.5%.
Federal Reserve Policy Cut Lifts Sentiment
The Fed’s decision to lower its benchmark rate by 25 basis points to 4.00%–4.25% has been the key driver of recent gains. Policymakers projected two more cuts this year and one in 2026, underscoring a gradual approach to easing.
Chair Jerome Powell described the reduction as a “risk-management cut” aimed at cushioning a cooling labor market. He emphasized that future decisions would be data-dependent, citing the dual risks of persistent inflation and uneven growth.
Analysts at Vital Knowledge noted that “bulls are celebrating the fact that both fiscal and monetary policy are now in stimulus mode while the AI mania continues.”
Trump–Xi Call in Focus
Political developments may also shape market sentiment. President Donald Trump and Chinese President Xi Jinping are scheduled to speak by phone later on Friday. According to Reuters, the discussion will likely focus on a potential deal to secure TikTok’s U.S. operations, a major point of contention in trade relations.
The call could serve as a stepping stone toward an in-person meeting at a South Korea summit later this year. Any progress could ease trade tensions and boost risk appetite.
Corporate Highlights
- FedEx (NYSE:FDX): Reported stronger-than-expected quarterly results with revenue at $22.24 billion and adjusted profit of $912 million, both topping forecasts. Cost-cutting helped offset softer international volumes after the removal of tariff exemptions.
- Lennar (NYSE:LEN): Posted a 46% drop in fiscal Q3 profit, with housing demand pressured by inflation and higher borrowing costs, despite efforts to stimulate sales through incentives.
