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Stock Market News for Sep 9, 2025

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Wall Street closed higher on Monday, driven by tech stocks. Investors started to focus on anticipated rate cuts by the Fed, starting in September itself. All three benchmark indexes closed in the green.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.3%, or 114.09 points, to close at 45,514.95. Fifteen components of the 30-stock index ended in negative territory, while 15 ended in positive territory.

The tech-heavy Nasdaq Composite added 98.31 points, or 0.5%, to close at 21,798.70. This is the index’s highest recorded close in its history.

The S&P 500 gained 13.65 points, or 0.2%, to close at 6,495.15. Six of the 11 broad sectors of the benchmark index closed in the green. The Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Industrials Select Sector SPDR (XLI) advanced 0.8%, 0.4% and 0.2%, respectively, while the Utilities Select Sector SPDR (XLU) declined 1%.

The fear gauge CBOE Volatility Index (VIX) decreased 0.5% to 15.11. A total of 16.2 billion shares were traded on Monday, higher than the last 20-session average of 16.1 billion.

Investor Mood Upbeat on Anticipation of Multiple Rate Cuts in 2025

Wall Street gained momentum on Monday as investors grew increasingly confident that the Fed is preparing to ease interest rates. The rally follows a weaker-than-expected jobs report from Friday, which underscored signs of a cooling labor market. Falling Treasury yields added to the conviction that monetary policy could soon shift toward rate cuts. The Nasdaq surged to a record level, while the Dow and the S&P 500 also advanced, supported by optimism over lower financing costs.

A key driver of this optimism was the CME Group’s FedWatch tool, which measures market-based probabilities of Fed actions. By Monday, the tool reflected near certainty that policymakers would deliver a September cut, assigning roughly a two-thirds chance of a 25 basis points reduction and even leaving room for the possibility of further cuts later in the year.

The upbeat mood spread across sectors, lifting broad equity benchmarks, with tech stocks leading the charge. Market participants are now turning their focus to upcoming inflation readings and additional labor data, which could shape the Fed’s trajectory.

Broadcom’s Quarterly Performance Drives the Tech Sector

Late last week, Broadcom Inc. (AVGO - Free Report) reported third-quarter fiscal 2025 earnings of $1.69/share, beating the Zacks Consensus Estimate of $1.66. This compares to earnings of $1.24 per share a year ago. It also posted revenues of $15.95 billion for the quarter, surpassing the Zacks Consensus Estimate by 0.78%. This compares to year-ago revenues of $13.07 billion.

Broadcom’s impressive quarterly results, powered by a major surge in AI chip revenues and a massive $10 billion order, sent its stock soaring around 3.2% on Monday. As Broadcom emerged as one of the top gainers in the S&P 500, its strength underlined confidence in AI-driven growth and reverberated across the semiconductor space. The earnings beat reinforced investor belief in AI infrastructure demand, helping lift sentiment in the tech sector and reaffirming Broadcom’s growing influence in shaping market expectations.

Consequently, shares of ServiceNow, Inc. (NOW - Free Report) and International Business Machines Corporation (IBM - Free Report) jumped 2.8% and 3%, respectively. Both currently carry a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

Per a Fed report, consumer credit for July increased $16 billion, after receding by $4.3 billion in June.


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