S&P 500 Reaches Record High as Fed Cuts Interest Rates
The S&P 500 hit a record high after the Federal Reserve cut interest rates by 50 basis points and suggested more cuts could follow. Major stocks like Tesla, Apple, and Meta Platforms gained, while Nvidia's rally lifted the semiconductor index. Jobless claims data improved, boosting global risk appetite.
The S&P 500 surged to a record high close on Thursday following the Federal Reserve's decision to cut interest rates by 50 basis points and hint at future reductions. Prominent stocks such as Tesla, Apple, and Meta Platforms made notable gains.
Nvidia's significant rally helped elevate the PHLX semiconductor index. An improvement in jobless claims data further increased global risk appetite.
Federal Reserve Chair Jerome Powell emphasized the strong U.S. economy and added that future rate cuts would be decided based on economic conditions. The small-cap Russell 2000 index also rose, benefiting from prospects of reduced operating costs and higher profits. The S&P 500 and Nasdaq Composite showed substantial gains, while the Dow Jones Industrial Average also rose notably.
BofA Global Research updated its forecast to predict 75 basis points in total rate cuts by year's end, higher than the previously expected 50 basis points. Despite September generally being a difficult month historically for equities, some sectors showed gains as banks like Citigroup and Bank of America lowered their prime rates.
However, not all was positive; Progyny, a firm specializing in fertility benefits management, saw its stock plunge after a major client decided to terminate its services agreement.
(With inputs from agencies.)
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