US Markets Steady After Fed Rate Cut Boosts Previous Rally

U.S. markets closed nearly unchanged on Friday after a rally driven by a Federal Reserve interest-rate cut. Major indexes saw weekly gains despite subdued activity. Expectations remain high for another rate cut in November. Utilities sector outperformed, while Intel shares rose following takeover news. Volume reached near-record levels.

U.S. stocks ended Friday's session nearly unchanged as investors took a breather following a strong rally spurred by a larger-than-expected interest-rate cut by the Federal Reserve. Nike's performance helped propel the Dow to a record.

Fed Governor Christopher Waller's remarks bolstered expectations for another 50 basis point cut in November, although Governor Michelle Bowman indicated a preference for a smaller reduction. Analyst Sid Vaidya suggested a cautious approach due to anticipated slower growth and stretched valuations in large-cap growth stocks.

Despite the pause, the major indexes - the Dow, S&P 500, and Nasdaq - all secured weekly gains, with particular strength in the utilities sector following Constellation Energy's data-center deal with Microsoft. Intel shares also climbed after takeover interest from Qualcomm.

The trading volume soared to 19.97 billion shares due to the 'triple witching' event, marking the heaviest trading day of the year. Historically, equities perform well in a rate-cutting environment, but the current high valuations present a mixed outlook.

(With inputs from agencies.)