US stocks hit new highs on tech and Fed optimism

US stocks ended higher and Nasdaq scored a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained amid optimism about expectations for rate cuts this year.

The three major indexes also registered gains for the week.

Apple shares climbed, extending recent gains. Earlier this week, US President Donald Trump said Apple would invest an additional US$100 billion in the US, bringing its total commitment to US$600 billion over the next four years.

The S&P 500 technology index also rose.

Also helping the S&P 500, shares of Gilead Sciences rose after it raised its full-year financial outlook. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2 percent on Friday, up from 5.8 percent on July 1, according to LSEG.

Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump’s interim pick for a Federal Reserve governor.

The president late in Thursday’s session nominated Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler’s abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15.

Miran, who is often aligned with Trump, has previously suggested Powell was “too late” in lowering rates.

Traders now peg about a 90 percent chance of the first rate cut hitting next month, according to CME Group’s Fedwatch tool, with futures pointing to at least two cuts by year-end.

The S&P 500 gained 49.45 points, or 0.78 percent, to end at 6,389.45 points, while the Nasdaq Composite gained 207.32 points, or 0.98 percent, to 21,450.02. The Dow Jones Industrial Average rose 206.97 points, or 0.47 percent, to 44,175.61. (Reuters)