AI-Summary – News For Tomorrow
Global markets are experiencing a bullish trend, fueled by anticipated shifts in the Federal Reserve’s dovish stance. Japan’s Nikkei 225 climbed for the third consecutive day, reaching an intra-day high, with semiconductor and retail stocks leading the charge. In the U.S., the S&P 500, Dow Jones, and Nasdaq all set record highs, driven by hopes of a “Goldilocks” scenario: a job market slowdown prompting Fed rate cuts without triggering a recession. Despite persistent inflation concerns linked to potential tariffs, traders anticipate the Fed prioritizing job market weakness. Consequently, interest-rate-sensitive sectors like real estate and homebuilding saw gains.
News summary provided by Gemini AI.
Japan’s Nikkei 225 set another intra-day high, rising for the third day and adding 0.9% to 44,780.29. Shares in semiconductor company Tokyo Electron, Sony Group and Fast Retailing were among the movers.
“What’s moving markets now isn’t just another rally — it’s the unmistakable shift of a dovish Fed tide, the kind that doesn’t rise in isolation but swells across oceans, lifting virtually every boat in every harbour,” Stephen Inness of SPI Asset Management said in a market commentary.
The S&P 500 rose 0.8% and set an all-time high for the third straight day. The Dow Jones Industrial Average rallied 617 points, or 1.4%, and the Nasdaq composite gained 0.7%. Both also hit records.
The hope on Wall Street has been for a slowdown, but a precisely measured one. The job market has to be weak enough to get the Fed to cut interest rates, which can give a kickstart to the economy and to prices for investments, but not so much that it causes a recession.
The Fed has been hesitant to cut interest rates throughout 2025 because of the threat that President Donald Trump’s tariffs could make inflation worse. Lower interest rates can push inflation even higher.
Traders believe the Fed will see the slowing job market as the bigger problem than inflation.
Stocks of companies that could benefit from lower interest rates rallied on Wall Street, including owners of real estate and homebuilders.
In other dealings on Friday, benchmark U.S. crude shed 57 cents to $61.80 per barrel. Brent crude, the international standard, slipped 55 cents to $65.82 per barrel.
The U.S. dollar rose to 147.46 yen from 147.15 yen. The euro slid to $1.1728 from $1.1740.
