Nasdaq, S&P 500 Hit New Highs as Alphabet Surpasses 3 Trillion Market Cap

On the morning of September 16, during the midday trading session, the Nasdaq and S&P 500 indices reached new intraday highs. Alphabet, the parent company of Google, became the fourth publicly traded company in the United States to surpass a market capitalization of 3 trillion dollars. Investors are preparing for a crucial Federal Reserve meeting this week, with the market almost certain that the Fed will restart the easing cycle and potentially open the door to further consecutive rate cuts.

During the early trading hours, the Nasdaq reached a high of 22,346.49 points, while the S&P 500 index hit a high of 6,619.62 points, both setting new intraday records. Alphabet's market capitalization exceeding 3 trillion dollars marks a significant milestone for the tech giant.

Investors are closely watching the Federal Reserve's upcoming meeting, where the central bank is expected to lower interest rates. The market is almost certain that the Fed will reduce rates by 25 basis points, with a 3.6% probability of a 50 basis point cut. The focus will be on whether the Fed will confirm market expectations of consecutive rate cuts in the future. The market has already priced in a 25 basis point rate cut, bringing the federal funds rate to 4.0%-4.25%.

Investors are also paying attention to the Fed's "dot plot" interest rate projections and Chairman Jerome Powell's comments on the future pace and extent of easing. The market has priced in a cumulative 125 basis points of rate cuts by the end of 2026. If the Fed's stance is not dovish enough, it could disappoint investors.

Goldman Sachs' chief U.S. economist, David Mericle, noted that the key question for the September FOMC meeting is whether the committee will hint that this could be the start of consecutive rate cuts. He expects the statement to mention a softening labor market but not change policy guidance or hint at a rate cut in October.

In addition to the Federal Reserve, other central banks, including the Bank of Canada, the Bank of England, and the Bank of Japan, will also announce policy decisions this week, making it a busy schedule for the world's ten largest trading currencies.

Despite economic risks, investor enthusiasm for artificial intelligence continues to drive the market. The focus will also be on whether the Senate will approve Stephen Miran's appointment to the Federal Reserve Board in time for him to participate in this week's Federal Open Market Committee meeting.