Dow, S&P 500 close at fresh records, log big gains for the week after Fed rate cut

Stocks rose on Friday, with major U.S. indexes notching weekly gains, as the Federal Reserve’s decision to cut interest rates set in investors’ minds.

The Dow Jones Industrial Average added 172.85 points, or 0.37%, to close at 46,315.27, reaching a fresh record high. The S&P 500 settled up 0.49% at 6,664.36, while the Nasdaq Composite advanced 0.72% to finish at 22,631.48.

The small-cap Russell 2000 dipped 0.7%, taking back some gains this week after the index touched a fresh record high earlier in the session.

Apple led the way higher, rising 3.2%, as the company’s latest iPhone went on sale around the world. Tesla shares were also up more than 2.2%.

Wall Street is on pace to post strong weekly gains. The S&P 500 and Dow are up 1.2% and 1%, respectively, while the Nasdaq is up 2.2%. The Russell 2000 gained 2.2%, notched its seventh weekly advance.

Stocks got a boost this week after the Fed lowered its benchmark overnight lending rate by a quarter percentage point, its first rate reduction since December. The move was widely expected by markets, but stocks had a volatile session on the back of the decision after Fed Chair Jerome Powell in his press conference characterized the decision as a “risk management cut.”