S&P 500 Rallies to Record Highs Following Federal Reserve Rate Cut

The S&P 500 index achieved intra-day record highs after the Federal Reserve slashed interest rates by 50 basis points and signaled further cuts. Major stocks such as Tesla, Apple, and Meta Platforms saw significant gains. Improved jobless claims data contributed to increased risk appetite in the market.

In a remarkable rally, the S&P 500 surged to intra-day record highs on Thursday following the Federal Reserve's decision to cut interest rates by 50 basis points and hint at more reductions to come. Major heavyweight stocks contributed to the rally, with Tesla soaring 7%, Apple nearly 4%, and Meta Platforms over 4%.

Elsewhere, Nvidia rose 4.8%, aiding a 5% increase in the PHLX semiconductor index. The positive sentiment was further bolstered by better-than-expected jobless claims data. Federal Reserve Chair Jerome Powell stated that inflation was under control and future rate cuts would be determined based on economic conditions.

On the broader market, the S&P 500 climbed 1.87% to 5,723.44 points, while the Nasdaq and Dow Jones posted gains of 2.70% and 1.42% respectively. Advancing issues significantly outnumbered decline across the U.S. stock market, highlighting a strong risk-on sentiment.

(With inputs from agencies.)