Stocks End Mixed as Nasdaq Rises; Fed, Consumer Data Loom Over Market

U.S. stocks finished the week on a mixed note Friday, with the Dow Jones Industrial Average falling 273.78 points, or 0.59%, to 45,834.2, while the S&P 500 slipped 3.18 points, or 0.05%, to 6,584.29. The Nasdaq Composite bucked the trend, climbing 98.03 points, or 0.44%, to close at 22,141.1. The small-cap Russell 2000 declined more sharply, shedding 1.03% to 238.32.

Despite the uneven close, all three major indexes posted gains for the week, reflecting investor optimism ahead of next week’s Federal Reserve decision. Futures markets are widely pricing in a quarter-point rate cut, though the spotlight will be on Chair Jerome Powell’s tone when he delivers updated economic projections. The Fed’s latest Summary of Economic Projections shows inflation expected to remain at 3.0% in 2025, with unemployment rising to 4.5%, suggesting policymakers will balance easing with caution.

Commodities offered some support to sentiment. Gold futures for December delivery rose $9.80, or 0.27%, to $3,683.40, while October crude oil gained 0.35% to settle at $62.59. Both moves reflected investor positioning ahead of the Fed meeting, with gold seen as a hedge against policy uncertainty.

Corporate action provided additional market drivers. Tesla surged more than 6% intraday, hitting $395.99, as technical momentum and speculative options trading fueled a breakout. The move contrasted with weakness in the broader auto sector, underscoring Tesla’s role as a retail trading bellwether.

Meanwhile, consumer spending trends highlighted potential headwinds for the economy. Bank of America data showed overall card spending rose 1.7% year-over-year in August, but generational dynamics painted a more fragile picture. Gen X households increased spending by just 0.1% year-over-year, trailing not only Baby Boomers but also younger cohorts. Analysts point to rising housing costs and financial pressures from supporting both children and aging parents as likely drags on this key demographic.

As investors prepare for the Fed’s decision, political pressures are also in view. With President Trump poised to influence a majority on the Fed Board, debate over the pace of rate cuts could intensify. Powell will be tasked with reaffirming the Fed’s independence while signaling a policy path that addresses both labor market softening and lingering inflation risks.

For now, equities have taken comfort in the expectation of easing financial conditions. The week’s gains across major indexes suggest investors remain willing to look past Friday’s mixed close, betting that central bank support and selective corporate strength will help sustain the rally into year-end.