Record Highs: S&P 500 Soars After Fed's Rate Cut

The S&P 500 hit a record high on Thursday, buoyed by the Federal Reserve's 50 basis points interest rate cut and optimistic economic outlook. Tesla, Apple, and Nvidia saw significant gains. The Nasdaq and Dow Jones also reached new highs. Volume on U.S. exchanges exceeded usual levels, reflecting strong market activity.

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 further cuts. Major stocks like Tesla, Apple, and Meta Platforms experienced notable gains, with Tesla jumping over 7% and Apple and Meta rising nearly 4% each.

AI leader Nvidia saw a 4% increase, driving the PHLX semiconductor index up by 4.3%. Better-than-expected jobless claims data further enhanced global risk appetites. On Wednesday, Federal Reserve Chair Jerome Powell announced a rate cut at the high end of expectations, expressing confidence in controlled inflation and the strength of the U.S. economy.

The small-cap Russell 2000 index gained 2.1% amid optimism for reduced operating costs and higher profits. Meanwhile, the Nasdaq climbed 2.51% and the Dow Jones Industrial Average rose 1.26%, both reaching new record highs. In extended trade, Fedex saw a 10% drop after reducing its revenue target for fiscal year 2025.

(With inputs from agencies.)