Stocks closed modestly higher on Friday as investors digested fresh political developments and awaited signals on future Federal Reserve policy. The Dow Jones Industrial Average, S&P 500, and Nasdaq all edged up, reflecting cautious optimism across Wall Street.

The S&P 500 rose by 0.3% to 6,359 points, continuing its upward momentum. The Nasdaq also notched gains, driven by strength in major technology stocks. Apple climbed 0.74%, Amazon posted a small loss, while Alphabet advanced 1.65%. Meanwhile, Tesla stood out with a 3.22% jump, and Broadcom saw a solid increase of 1.12%. Other notable movers included JPMorgan gaining nearly 1% and Walmart up 0.82%.

Market sentiment was influenced by growing speculation around the Federal Reserve’s next steps, especially as attention shifts to how the upcoming U.S. election could shape monetary policy. Investors are closely watching for any signals from Donald Trump regarding his intentions for the Fed, particularly amid rising political debate over central bank independence. Rumors and statements from political figures can add volatility, making it crucial for traders to stay vigilant.

Strong corporate earnings from several large-cap companies helped support the market, offsetting some of the uncertainty coming from Washington. Nonetheless, investors remain wary of how policy decisions or political changes could impact interest rates, inflation, and consumer confidence in the months ahead.

Looking forward, all eyes remain on the evolving relationship between politics and the central bank, as any significant changes could reshape the market trajectory. With uncertainty still in the air, market participants continue to focus on economic indicators and Fed communications for further direction.