US market today: Wall Street heads for record-setting week; S&P, Nasdaq rise

Wall Street edged higher on Friday, keeping pace for a potential record-setting week, with the S&P 500 up 0.1% and the Nasdaq rising 0.3%, while the Dow Jones Industrial Average gained 17 points, or less than 0.1%, by 9:35 a.m.

Eastern time, AP reported. The gains follow all-time highs hit by the three major indexes and the Russell 2000 small-cap index on Thursday.Investors remain optimistic that the Federal Reserve will continue cutting interest rates to support the economy after lowering rates for the first time this year on Wednesday. FedEx contributed to market stability with stronger-than-expected quarterly profit and revenue, rising 1.4% on the back of a robust domestic package business. In contrast, homebuilder Lennar dropped 5% after reporting weaker-than-expected revenue despite beating profit forecasts, citing ongoing pressures in the housing market.Lower interest rates are expected to support the struggling housing sector and could ease concerns over elevated stock valuations. However, strong market expectations for additional Fed cuts leave stocks vulnerable to declines if the central bank eases less than anticipated.

Fed Chair Jerome Powell has highlighted the challenge of simultaneously addressing stubborn inflation and a slowing job market with a single monetary policy tool.Overseas, European markets inched higher following mixed finishes in Asia. Japan’s Nikkei 225 fell 0.6% after the Bank of Japan held rates steady and planned partial sales of its stock funds, while Chinese indexes closed mixed ahead of a US-China call on tariffs and a TikTok agreement. In the bond market, the 10-year Treasury yield rose slightly to 4.12% from 4.11% late Thursday.