S&P 500 Hits New Highs as Tech Stocks Drive Market

On September 17, 2025, traders were busy on the floor of the New York Stock Exchange as the S&P 500 reached new heights. This surge was fueled largely by technology stocks, coinciding with recent interest rate cuts by the Federal Reserve, which indicated more cuts might still be forthcoming.

The broad market index climbed by 0.4%, marking a fresh record, while the Nasdaq Composite saw an impressive increase of 0.8%, also achieving new highs. Meanwhile, the Dow Jones Industrial Average saw a modest rise of just 14 points.

In particular, Intel’s stock rose around 24%, with Nvidia announcing a $5 billion investment in chip manufacturers to collaborate on products for data centers. This news helped boost Nvidia’s shares by 3%. Other technology stocks, including Broadcom, Palantir, and Tesla, also experienced gains. However, Advanced Micro Devices saw a decline of 5% during the same period.

This market activity followed a volatile trading day earlier when the Fed announced a quarter-point cut to its benchmark interest rate, which was not unexpected. On that day, only the Dow Jones managed to post gains, rising by 260 points, or about 0.6%, while both the S&P 500 and Nasdaq ended lower.

Fed Chairman Jerome Powell, at a press conference following the decision, tempered investors’ hopes for rapid rate cuts, referencing the central bank’s cautious approach. He labeled the latest cut as a “risk management” measure and indicated that more cuts could occur this year—two are anticipated, with just one more likely in 2026. Traders, however, seemed to be predicting two to three more reductions next year.

“The Fed’s 25 basis point cut sends a clear message,” Powell remarked. “The labor market is softening, and inflation remains stubborn, compelling policymakers to act, but they are proceeding slowly.” He suggested that this isn’t a complete pivot but represents a more measured approach.

For investors, he added, this signals more moderate rate relief rather than an explosive shift. “The Fed is navigating a tightrope, balancing the implications of inflation and employment statistics.”

Despite the losses observed on Wednesday, both the S&P 500 and Nasdaq are on track for weekly gains, having risen by 0.7% and 1.5%, respectively. This positive momentum puts the broad market index in position for its sixth consecutive week of gains, along with a solid performance from the tech-heavy Nasdaq. The Dow, too, has managed an increase of 0.3% this week.