S&P 500 and Nasdaq Close at Record Highs

The three major U.S. stock indexes closed higher Monday, with the S&P 500 and Nasdaq reaching record intraday highs as investors anticipated the Federal Reserve’s policy meeting this week.

The Federal Open Market Committee convenes September 16-17, with market participants widely expecting a 25-basis-point rate cut following recent economic data indicating labour market weakness.

Technology stocks drove the rally, with Alphabet surpassing $3 trillion in market capitalisation and Tesla surging after CEO Elon Musk purchased $1 billion in shares. The “Magnificent Seven” stocks, excluding Nvidia, served as key market drivers.

Gold, steel, and software sectors demonstrated considerable strength, while airline, oil service, and housing stocks declined notably. The rally reflected optimism surrounding anticipated Fed rate cuts and continued momentum from last week’s substantial gains.

Chief negotiators from India and the United States will meet in New Delhi on Tuesday for stock-taking discussions on the proposed bilateral trade agreement (BTA), signalling that talks are back on track after a month-and-a-half-long pause.

Nifty broke an eight-session winning streak with a minor fall of 44 points to close at 25069 yesterday. The session was marked by consolidation, as the Nifty traded within the previous session’s range.

Nifty is positioned above its short-term averages, and a higher top and higher bottom formation on the weekly line chart has confirmed the bullish reversal. Immediate support for the Nifty is now seen at 24,900, while 25,154 and 25,250 could offer near-term resistance.

Indian markets are expected to open on a muted note, while major indices are not showing significant movement, we anticipate improved market breadth with stock-specific activity continuing as seen in yesterday’s session.

Source: HDFC Securities Prime Daily, 16 Sept 2025

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