S&P 500 Surges to Record High Close on Euphoria Over Fed Rate Cut
The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon.
Heavyweight stocks that have enjoyed much of this year's stock market rally made fresh gains, with Tesla (TSLA.O), Apple (AAPL.O), and Meta Platforms (META.O), up sharply.
AI powerhouse Nvidia (NVDA.O) rallied, helping lift the PHLX semiconductor index (.SOX),.
Better-than-expected jobless claims data further stoked global risk appetite.
On Wednesday, the Federal Reserve announced a rate cut at the high end of expectations, and said it had greater confidence inflation was under control. Fed Chair Jerome Powell said the U.S. economy remained strong and the central bank would decide on the appropriate pace of future rate cuts.
The small-cap Russell 2000 index (.RUT), rose as lower interest rates boosted prospects of reduced operating costs and greater profits.
According to preliminary data, the S&P 500 (.SPX), gained 94.95 points, or 1.69%, to end at 5,713.21 points, while the Nasdaq Composite (.IXIC), gained 440.68 points, or 2.49%, to 18,011.51. The Dow Jones Industrial Average (.DJI), rose 526.98 points, or 1.27%, to 42,028.54.
Source : Reuters
