NEW YORK, Aug 8 (Reuters) - U.S. stocks ended higher and the Nasdaq notched a record closing high for the second straight day on Friday as technology-related shares, including Apple, gained and as investors were optimistic about potential interest rate cuts. The three major indexes also registered solid gains for the week. Apple shares climbed 4.2% on Friday and were up 13.3% for the week in their biggest weekly percentage gain since 2020. The S&P 500 technology and communication services indexes led sector gains for the S&P 500 on Friday and the indexes also posted record high closes. Also helping the S&P 500, shares of Gilead Sciences jumped 8.3% after it raised its full-year financial outlook. Recent weaker economic data has underpinned expectations for rate cuts, while investors are evaluating Trump's interim pick for a Federal Reserve governor. The president late in Thursday's session named Council of Economic Advisers Chair Stephen Miran to a short-term board seat following Adriana Kugler's abrupt exit last week, as he narrowed his shortlist to succeed Fed Chair Jerome Powell, whose term ends on May 15. Miran, who is often aligned with Trump, has previously suggested Powell was 'too late' in lowering rates. 'There are certainly investors who think if the Fed is going to cut rates then the overarching theme is, don't fight the Fed on lower rates,' said Rick Meckler, partner at Cherry Lane Investments, a family investment office in New Vernon, New Jersey. 'The other side of the equation has really been the tariffs, and how the tariffs turn out remains uncertain.' Expectations for a rate cut of at least 25 basis points by the Fed at its September meeting stand at 89.4%, according to CME's FedWatch Tool, up from 80.3% a week ago. Futures are pointing to at least two cuts by year-end. Trump's tariffs on imports from dozens of countries kicked in this week. The Dow Jones Industrial Average rose 206.97 points, or 0.47%, to 44,175.61, the S&P 500 gained 49.45 points, or 0.78%, to 6,389.45 and the Nasdaq Composite gained 207.32 points, or 0.98%, to 21,450.02. It was the Nasdaq's 18th record closing high for 2025, with the index now up about 11% for the year so far. The S&P 500 ended just shy of a record closing finish. For the week, the S&P 500 rose 2.4%, the Dow gained 1.3% and the Nasdaq climbed 3.9%. A look at the U.S. stock market's rally in the coming week, with some investors saying equities could be set for a pullback. The monthly U.S. consumer price index report is due on Tuesday. Investors also are monitoring U.S.-India trade relations as New Delhi announced fresh U.S. arms and aircraft purchases, according to three Indian officials, after Trump hiked tariffs on Indian exports to 50% this week. Among other gainers Friday, shares of Expedia rose 4.1% after the company raised its annual forecast for gross bookings and revenue growth. With results in now from more than 450 of S&P 500 companies, estimated earnings growth for the second quarter was at 13.2% on Friday, up from 5.8% on July 1, according to LSEG. Advancing issues outnumbered decliners by a 1.37-to-1 ratio on the NYSE. There were 272 new highs and 88 new lows on the NYSE. On the Nasdaq, 2,442 stocks rose and 2,157 fell as advancing issues outnumbered decliners by a 1.13-to-1 ratio. Volume on U.S. exchanges was 16.18 billion shares, compared with the 18.27 billion average for the full session over the last 20 trading days. Owning big U.S. tech stocks is once again the most popular trade, according to BofA's monthly fund manager survey, as upbeat earnings and improved sentiment towards the global economy send investors back into stocks.

Nasdaq posts record closing high with tech gains, rate cut optimism

U.S. stocks ended higher on August 8, 2025, with the Nasdaq achieving its 18th record closing high of the year, driven by strong performance in technology-related shares including Apple and Expedia. The S&P 500 and Dow Jones also posted gains, with the Nasdaq up 3.9% for the week and the S&P 500 rising 2.4%. Investor optimism is fueled by expectations of potential interest rate cuts from the Federal Reserve, with the CME FedWatch Tool showing an 89.4% probability of at least a 25 basis point cut in September, up from 80.3% a week prior. This sentiment is supported by weaker economic data and the recent appointment of Stephen Miran, a Trump-aligned economic adviser, to a short-term Federal Reserve board seat. Tariff policies, particularly Trump's 50% tariff hike on Indian exports, are also influencing market dynamics. Gilead Sciences saw an 8.3% jump after raising its full-year financial outlook. The monthly U.S. consumer price index report is scheduled for Tuesday, and investors are closely watching U.S.-India trade relations following India's announcement of new arms and aircraft purchases. Overall, tech stocks remain a dominant holding, with Apple seeing its largest weekly gain since 2020 and Expedia rising after raising its annual revenue forecast.