US market today: Wall Street drifts near record highs; S&P 500 steady, Dow dips 51 points, Fed rate cut hopes fuel optimism

Wall Street edged higher on Friday, heading for its best week in five, as investors priced in expectations of a Federal Reserve interest rate cut next week. The S&P 500 held steady near record levels, the Dow Jones Industrial Average fell 51 points (0.1%), and the Nasdaq composite rose 0.1% after setting all-time highs in the previous session, AP reported.Investor sentiment has been buoyed by hopes that the Fed will ease rates to support growth while inflation remains under control. Mortgage rates have already declined in anticipation of the cut, and market optimism hinges on the U.S. job market slowing enough to prompt action without triggering a recession.Among key movers, RH fell 1.2% after reporting weaker-than-expected quarterly results and lowering its revenue forecast due to tariffs and a soft housing market. Adobe slipped 0.9% despite stronger profits and an upgraded annual forecast, led by AI product growth. Super Micro Computer jumped 3.6% on high-volume shipments of Nvidia-powered AI racks, while Microsoft rose 0.8% after EU regulators cleared its Teams platform changes, resolving a long-running antitrust probe.Global markets were mixed, with Japan’s Nikkei 225 up 0.9% to a record and Hong Kong’s Hang Seng gaining 1.2%. In the bond market, the 10-year Treasury yield rose to 4.06% from 4.01% as investors weighed expectations of upcoming Fed rate cuts.The Federal Reserve has kept rates on hold throughout 2025, citing concerns that tariffs could increase prices. President Donald Trump has threatened action against Fed Chair Jerome Powell and Governor Lisa Cook over perceived delays in rate cuts. The administration recently sought court approval to remove Cook from the board ahead of the Fed’s next meeting, following a previous judicial setback.