Stock Market Update: Dow 46,315, Nasdaq 22,631 as Fed Cut and TikTok Deal Fuel Rally

Dow Jones (DJIA) Extends Record Run at 46,315 as Apple and Tesla Lead

The Dow Jones Industrial Average (DJIA) ended Friday at 46,315.27, up 172.85 points (+0.37%), cementing its fresh record high. Weekly gains of 1% came as rate cuts boosted confidence in cyclical exposure. Apple (AAPL) rose 3.2% after the global rollout of its new iPhone showed robust early demand. Tesla (TSLA) advanced 2.2%, driven by optimism that cheaper financing will revive EV sales. Both names accounted for nearly half the Dow’s daily point gains, reflecting Big Tech’s growing weight in indices traditionally tilted toward industrials.

S&P 500 (SPX) Hits 6,664 on AI and Rate-Cut Momentum

The S&P 500 (SPX) closed at 6,664.36, up 0.49%, and added 1.2% over the week. Valuations remain stretched with the index trading at 22x forward earnings, a level not seen since before the 2022 correction. Yet momentum is underpinned by AI adoption, resilient consumer spending, and the Fed’s easing cycle. SolarEdge Technologies (SEDG) surged 4% Friday and 24% for the week, showing how rate-sensitive solar names benefit directly from cheaper borrowing costs. Newmont (NEM) gained 4% on asset sales, while Orla Mining (ORLA) fell 7% following Newmont’s divestiture.

Nasdaq Composite (IXIC) Climbs to 22,631; Semiconductors Dominate

The Nasdaq Composite (IXIC) rose 0.72% to 22,631.48, with a 2.2% weekly gain, outpacing other indices. Semiconductor momentum was pivotal. ASML (ASML) gained after Bank of America lifted its price target to $1,082 from $833, citing upside from the Nvidia (NVDA)–Intel (INTC) $5B partnership. NVDA remains up triple digits YTD, while INTC dropped 3.2% Friday as doubts linger about execution despite federal support. The Nasdaq’s reliance on megacaps is intensifying, raising both opportunity and concentration risk.

Russell 2000 (RUT) Finally Breaks 967-Day Stagnation

Small caps staged a breakout, with the Russell 2000 (RUT) reaching its first record close since 2021, ending a 967-trading-day drought. The index added 3% on the week and extended a seven-week winning streak, its longest since 2020. The surge underscores how lower rates disproportionately help smaller firms with heavier debt loads. Traders noted broad participation, with nearly 70% of Russell constituents closing higher this week.

Fed’s “Risk Management Cut” Drives Liquidity Surge

The Federal Reserve cut rates by 25bp for the first time since December, igniting a rally across equities. Chair Jerome Powell described the move as a “risk management cut,” hinting that more easing could follow. Markets are now pricing in two additional cuts by year-end, though new Fed governor Stephen Miran projected as many as six. The 10-year Treasury yield settled near 4.14%, reflecting investor uncertainty over the depth of cuts versus inflation risk. Historical data shows that in non-recessionary cycles, Fed easing has consistently supported equities.

Trump’s $550B Industrial Push Reframes Equity Flows

President Donald Trump unveiled plans to leverage a $550B manufacturing fund, targeting semiconductors, critical minerals, and reshoring infrastructure. Federal leases for land and water rights are under consideration, signaling a dramatic state-backed pivot to industrial policy. Beneficiaries include Intel (INTC), Micron (MU), and industrial contractors tied to energy and construction. While INTC slumped Friday, analysts see Trump’s fund as a potential multi-year catalyst.

TikTok Deal Sparks Moves in Oracle, Meta, and Snap

Markets digested confirmation of a TikTok deal between Trump and Xi Jinping, transferring around 50% ownership to U.S. investors. Oracle (ORCL) surged 4%, extending its AI-driven rally, while Meta Platforms (META) slipped fractionally and Snap (SNAP) plunged 3.3% on competitive pressures. The U.S. government will reportedly collect multibillion-dollar fees from the transaction, adding a fiscal twist to the geopolitical deal.

Corporate Earnings: FedEx Surges, Lennar Slides

FedEx (FDX) gained 5.8% after hours as Q1 EPS hit $3.83 on $22.24B revenue, beating consensus of $3.59 on $21.66B. Management warned of a $1B hit from tariffs but reinstated guidance, lifting sentiment. Lennar (LEN) fell 3% after Q3 profit cratered 46%, with EPS at $2.29 vs $2.10 expected, on revenue of $8.81B vs $9B expected. Incentives and mortgage buydowns failed to offset affordability headwinds. Scholastic (SCHL) tumbled 11% on deeper losses, while Brighthouse Financial (BHF) jumped 26% on takeover chatter valuing shares at $65–$70.

Commodities: Gold Near Record, Uranium ETF Explodes

Gold (COMEX Dec ’25) closed at $3,719.40/oz, marking its fifth consecutive weekly gain, up 0.1% for the week. Ray Dalio urged investors to allocate at least 10% to gold and non-fiat assets, warning ballooning U.S. debt—set to add $3.4T—risks destabilizing fiat currencies. Meanwhile, the VanEck Uranium and Nuclear ETF (NLR) surged 5.39% to $137.36, setting all-time highs not seen since 2007, with a 12% weekly rally on nuclear momentum.

Sector and Insider Trends: AI Still Commands Inflows

Institutional flows continue to target AI-driven megacaps, with ETFs seeing concentrated allocations to AAPL, MSFT, NVDA, and AMZN. Insider transactions show continued selling at stretched valuations, but buybacks at Apple and Microsoft are cushioning volatility. Energy ETFs and small-cap allocations gained traction this week, reflecting investor positioning for cyclical upturns under Fed easing. UPS (UPS) remained weak, down 32% YTD, after BMO downgraded the stock citing tariff headwinds and stalled cost reductions.

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