U.S. stock indices experienced a significant rally last week, reaching impressive heights as investors prepared for an important Federal Reserve meeting scheduled for September 16-17. The surge was particularly pronounced in artificial intelligence-related stocks, which played a leading role in the upward momentum.
The Dow Jones Industrial Average, S&P 500, and Nasdaq all recorded substantial weekly gains, marking new all-time highs. The positive trend was not confined to large-cap stocks; smaller-cap and equal-weight indexes also demonstrated strength, highlighting a broad-based market advance that defies dependence on just a few major technology firms.
As the Federal Reserve’s meeting approaches, market participants are anticipating a quarter-point rate hike. Investors are also keenly interested in remarks from Chair Jerome Powell, particularly for signs of dovish sentiment. Speculation surrounding possible interest rate cuts in 2026 has also emerged, but many Fed officials are expressing caution about making any swift policy changes.
Several leading stocks are nearing or surpassing crucial technical thresholds that traders often regard as favorable entry points. Notably, Nvidia (NVDA) has regained its 50-day moving average, featuring a flat base with a critical buy point around $184.48, alongside a potential early entry from a recent high of $180.28. Concurrently, GE Vernova (GEV) has also moved above its 50-day line, presenting a base with a buy point close to $677.29, while an early-entry point is set at $653.50.
Tesla (TSLA) made headlines with a remarkable increase of approximately 12.85% last week, breaking past its consolidation buy point of $367.71. However, shares are now regarded as “extended,” indicating reduced technical support at the current price levels.
Meta Platforms (META) is holding above its 50-day line, remaining in a state of consolidation as it prepares for its upcoming Connect conference. The stock is demonstrating a shallow base, with a potential early entry at the high of September 8, which is $766.51. Additionally, Rocket Lab is among the stocks noted for strong technical setups, having recently broken out of a cup-with-handle base, now situated within its buy zone.
Despite the bullish market activity, many investors remain cautious, opting to steer clear of stocks that have already extended significantly. Sectors linked to technology, semiconductors, and innovation-focused exchange-traded funds (ETFs) reported solid gains during this rally.
With the Fed meeting looming, all eyes will be on how the central bank addresses inflation concerns and whether it signals a more accommodating approach toward future rate cuts. The manner in which Powell characterizes the economic outlook related to labor, growth, and inflation is poised to influence the sustainability of the recent stock market gains.
