Nasdaq hits record high as Fed cuts rates cautiously

The Nasdaq Composite touched another record high as technology stocks surged following the Federal Reserve’s 0.25% rate cut to a 3.75–4% target range. AI chip enthusiasm and strong corporate earnings supported gains, while the Dow and S&P 500 closed marginally lower. Chair Jerome Powell emphasized that additional cuts were not guaranteed, signaling a data-dependent approach. Investors rotated into growth and semiconductor names, reflecting optimism for AI-driven earnings momentum amid stable bond yields and cautious sentiment surrounding future monetary easing.