Dow Jones Hits Record High Amid Rate Cut Speculation

The Dow Jones Industrial Average set a new record high, closing up 0.6% as Wall Street anticipates a significant interest rate cut from the Federal Reserve. The S&P 500 also showed slight gains, nearing its own record, while the Nasdaq Composite dipped 0.5%, primarily due to declines in major tech stocks like Apple, which fell 2.8% amid reports of weak iPhone demand. Investors are now pricing in a 63-67% chance of a 50-basis-point cut in interest rates during the Fed's upcoming meeting, a shift from earlier expectations. Notably, Alcoa and Intel saw significant gains, with Alcoa's shares rising 6.1% after announcing a stake sale and Intel's stock surging over 8% following federal funding news. The market has been reacting to both inflation data and the potential for easing monetary policy, with many experts remaining positive about equity markets despite concerns over volatility. As traders await the Fed's decision, the focus remains on the broader economic indicators and the potential for continued growth in various sectors beyond technology.