Nasdaq Hits All-Time High Amid Apple Rally, Fed Warnings Ignored?

On September 1 in New York, major U.S. stock indexes finished mixed, buoyed by better-than-expected tech earnings and falling oil prices. The S&P 500 climbed 0.3%, marking its second straight record high, while the Nasdaq rose 0.9%, setting a new peak of its own. In contrast, the Dow Jones Industrial Average slipped 0.3%, and the small-cap-focused Russell 2000 advanced 0.5%.

Corporate results were the day’s main catalyst. Apple reported quarterly revenue and earnings above analyst forecasts, sending its shares up 3.3% and contributing significantly to the S&P 500’s gain. Consumer names such as Estée Lauder also surprised investors with strong results, driving their stocks higher. After mixed reports earlier this week from Alphabet, Amazon, Microsoft and Meta—often dubbed the “Magnificent Seven”—Apple’s solid performance helped restore some confidence across the technology sector.

On the data front, April’s ISM manufacturing index slightly exceeded expectations, indicating that the sector remains in expansion territory and easing some concerns about an economic slowdown. Meanwhile, the Federal Reserve held rates steady but cautioned that a war in Iran represents a significant risk to growth and inflation, keeping bond investors cautious. At the same time, a pullback in international oil prices pushed U.S. 10-year Treasury yields modestly lower, creating a more favorable backdrop for growth stocks.

With many global markets closed for Labor Day, trading sentiment varied across the few openings. Tokyo’s Nikkei 225 rose 0.4%, whereas London’s FTSE 100 fell 0.6%, reflecting divergent risk appetites by region. Despite geopolitical tensions in the Middle East, valuation concerns and the Fed’s hawkish warning, U.S. investors appear reluctant to cut their exposure to growth and technology stocks, citing robust corporate earnings and a benign interest-rate outlook.