U.S. equity markets closed the week on a buoyant note as the Nasdaq Composite notched another record and investors sharpened their focus on the Federal Reserve’s policy meeting next week. The Nasdaq finished Friday at 22,141.10, rising 0.44% and marking its fifth straight record close for the week, helped by a notable lift in Tesla shares. Over the past five trading days the Nasdaq gained roughly 2%.
The S&P 500 was essentially flat on Friday, slipping 0.05% to 6,584.29, but still delivered a solid 1.6% weekly advance. The Dow Jones Industrial Average reversed some recent strength on Friday, falling 273.78 points, or 0.59%, to 45,834.22 after crossing the 46,000 mark for the first time on Thursday. Even with Friday’s pullback, the Dow added about 1% for the week, snapping a two-week losing streak.
All three major indexes had closed at record highs the day before and finished the week higher, driven by softer labor-market signals and inflation that showed signs of remaining under control. Those developments have pushed traders toward pricing in an imminent policy response: cooler job growth and inflation that isn’t accelerating have increased expectations that the Fed will deliver a quarter-point cut when it meets on September 17. Traders using the CME FedWatch Tool see that cut as nearly certain.
This week’s economic releases underpinned that shift. The consumer price index for August came in slightly above forecasts, but the bigger surprise was a jump in initial jobless claims to their highest level since October 2021. The Labor Department also issued downward revisions to prior job-growth figures, reinforcing the view of a weakening labor market that could tip the Fed toward easing.
For crypto and DeFi markets, the prospect of lower interest rates is a double-edged sword: easier policy can lift risk assets and support Bitcoin and Ethereum price rallies, while weakening macro fundamentals can increase volatility and reshape borrowing costs across lending protocols and stablecoin markets. Traders and on-chain analysts will be watching next week’s Fed decision closely for signals that will influence allocations across equities, crypto, and fixed-income markets.
- Nasdaq Composite: 22,141.10 (+0.44%), fifth straight record close; ~2% gain over the past five trading days
- S&P 500: 6,584.29 (-0.05% on Friday), +1.6% for the week
- Dow Jones Industrial Average: 45,834.22 (-273.78, -0.59% on Friday), crossed 46,000 on Thursday, ~1% weekly gain
- Fed meeting: September 17 — market pricing points to a quarter-point cut; CME FedWatch Tool sees the cut as nearly certain
- Economic context: August CPI slightly above forecasts; initial jobless claims at highest since October 2021; Labor Department revised prior job-growth figures downward
“Cooler job growth and inflation that isn’t accelerating have increased expectations that the Fed will deliver a quarter-point cut when it meets on September 17.”
