Stock markets across the United States closed at record highs on Thursday, September 11, 2025, as investors digested a fresh batch of inflation and labor data and looked ahead to a Federal Reserve meeting widely expected to result in a rate cut. The Dow Jones Industrial Average made history by closing above 46,000 for the first time, while the S&P 500 and Nasdaq Composite also reached new all-time highs, capping off a remarkable week for Wall Street.
The day’s trading session followed a period of exceptional momentum. According to The Wall Street Journal, the blue-chip Dow surged more than 600 points during Thursday’s session, cementing its place in the record books. This upward push was mirrored by the S&P 500, which gained 0.9%, and the tech-heavy Nasdaq Composite, which advanced 0.7%. All three major averages not only ended the day at their highest levels ever but also posted robust gains for the week, with each up about 1.6% since Monday.
Overnight futures activity reflected a market catching its breath after the rally. As reported by CNBC, Dow Jones Industrial Average futures were flat, as were S&P 500 and Nasdaq 100 futures, in the wake of Thursday’s surge. Earlier in the day, S&P 500 futures had edged up 0.1%, Dow futures added 0.1%, and Nasdaq 100 futures gained 0.2%, according to MarketWatch. This cautious optimism suggested investors were holding steady as they awaited the Federal Reserve’s next move.
Much of the market’s confidence stemmed from a combination of economic reports released Thursday morning. The Consumer Price Index (CPI) for August showed a month-to-month increase of 0.4%, a touch higher than the 0.3% economists polled by Dow Jones had expected. On a 12-month basis, however, consumer prices rose 2.9%, which was exactly in line with expectations and up from July’s 2.7%. While still above the Fed’s 2% target, the inflation reading provided some reassurance that price pressures were not spiraling out of control.
Yet, it was the labor market data that truly caught investors’ attention. Weekly initial jobless claims jumped by 27,000 to 263,000 for the week ended September 6, the highest level since October 2021 and well above the anticipated 235,000. This surprise spike signaled a cooling in the labor market, which many on Wall Street interpreted as a sign that the Federal Reserve would feel compelled to act. As Seema Shah, chief global strategist at Principal Asset Management, told CNBC: “Today’s CPI report has been trumped by the jobless claims report. While the CPI report is a tad hotter than expected, it will not give the Fed a moment of hesitation when they announce a rate cut next week. If anything, the jump in jobless claims will inject a bit more urgency in the Fed’s decision making, with [Fed Chair Jerome] Powell likely signaling a sequence of rate cuts is on the way.”
Futures markets seemed to agree. The CME FedWatch tool showed traders pricing in a quarter percentage point rate cut at the conclusion of the Fed’s September 17 meeting with near certainty. The prospect of easier monetary policy has fueled much of the recent rally, with investors betting that lower borrowing costs will help sustain economic growth and keep corporate profits climbing, even as some indicators point to a softening jobs market.
The positive sentiment extended beyond U.S. borders. According to MarketWatch, most global stock indexes rose in tandem with their American counterparts. In Europe, the European Central Bank (ECB) opted to keep its main rate on hold after a series of more aggressive cuts earlier this year—a contrast to the more cautious approach taken by the U.S. Federal Reserve so far. European defense stocks also extended gains, while oil prices fell as traders weighed OPEC+’s plan to boost crude production against ongoing tensions in the Middle East and Russia.
Back in the U.S., the bond market also reflected shifting expectations. Ten-year Treasury yields dipped below 4% for the first time since early April before settling at 4.01%, as reported by MarketWatch. Lower yields typically signal investor confidence that inflation is under control and that rate cuts are on the horizon.
The week’s performance was especially notable for the S&P 500, which is on pace for its best weekly showing since early August and its fifth positive week in the last six. The Nasdaq is poised for its second consecutive winning week, while the Dow is set to post its first positive week in three. All told, the strong performance of the major averages has been powered by a combination of resilient technology stocks, expectations of Federal Reserve support, and a belief that inflation is finally being tamed after a long period of uncertainty.
Still, the data has not been uniformly positive. On Wednesday, September 10, the Dow Jones Industrial Average actually fell 220 points, or 0.48%, to 45,491, while the S&P 500 increased 19 points, or 0.30%, to 6,532, and the Nasdaq Composite gained just 7 points, or 0.03%, to 21,886. These modest moves were quickly overshadowed by Thursday’s fireworks, but they serve as a reminder that volatility remains a constant presence in today’s markets.
Investors now turn their attention squarely to the Federal Reserve’s meeting next week. The central bank finds itself at a crossroads: inflation is still running above its stated target, but a weakening labor market may force its hand. The delicate balance between supporting job growth and keeping prices in check will be front and center as Chair Jerome Powell and his colleagues deliberate on their next steps.
Meanwhile, outside the U.S., the ECB’s cautious stance and the ongoing volatility in energy markets add further complexity to the global economic picture. Oil traders, for instance, are wrestling with OPEC+’s decision to ramp up production even as geopolitical tensions simmer in key regions. European defense stocks, buoyed by these same tensions, have continued to climb.
With all eyes on the Fed, the coming days promise to be pivotal for investors and policymakers alike. The question now is whether the central bank’s anticipated rate cut will be enough to sustain the bull market’s momentum—or if new challenges lie just around the corner.
As the dust settles on a historic day for Wall Street, investors are left balancing optimism about the future with a healthy dose of caution. The interplay between inflation, employment, and monetary policy remains as crucial as ever, setting the stage for a closely watched and potentially market-moving week ahead.
