On Friday, stock futures exhibited minimal fluctuations after a successful trading session that propelled indexes to unprecedented heights, influenced by the Federal Reserve’s recent decision to lower interest rates, which has firmly established itself in the psyche of investors.

Futures associated with the Dow Jones Industrial Average experienced a decline of approximately 22 points, translating to a decrease of 0.5%. The S&P 500 futures and Nasdaq 100 futures experienced a modest increase, each rising by less than 0.1%. The three principal stock market averages concluded the trading session at unprecedented levels, achieving new intraday records on Thursday. Significantly, the small cap-focused Russell 2000 experienced a surge of 2.5%, concluding the session at a record high for the first time since 2021.

“The market is being held afloat by the earnings numbers,” stated Aswath Damodaran. Provided that the earnings figures continue to be reported, there exists no impetus for a modification.  “It is not solely Big Tech. It’s not just tech,” he added. “It encompasses the entirety of the stock market.” Thursday’s market movements follow the Federal Reserve’s decision to reduce its benchmark overnight lending rate by a quarter percentage point, marking the first rate cut since December. The decision was anticipated by market participants; however, the stock market experienced significant volatility in response to this announcement. Fed Chair Jerome Powell, during his press conference, described the action as a “risk management cut.”

Following the gains observed on Thursday, both the Dow and S&P 500 indices are positioned to conclude the week with an increase of 0.7%. The tech-heavy Nasdaq Composite has experienced an increase of 1.5%, whereas the Russell 2000 has surged by nearly 3%. On Friday, the calendar reveals an absence of economic reports as well as significant earnings announcements.