S&P 500 Surges to Record High Following Federal Reserve Rate Cut

The S&P 500 and Dow Jones Industrial Average reached record highs after the Federal Reserve cut interest rates by 50 basis points. Improved jobless claims data and confidence in controlled inflation contributed to market gains. Heavyweight stocks like Tesla, Apple, and Meta Platforms saw notable increases.

The S&P 500 reached a record high close on Thursday, thanks to a significant rate cut by the Federal Reserve. Concurrently, the Dow Jones Industrial Average also hit a record, ending above 42,000 for the first time.

High-performing stocks continued their upward trend, with Tesla gaining over 7% and Apple and Meta Platforms each up nearly 4%. Nvidia's 4% surge helped push the PHLX semiconductor index up by 4.3%.

Better-than-expected jobless claims data boosted global risk appetite. Fed Chair Jerome Powell asserted that the U.S. economy remains strong, with more rate cuts potentially on the horizon. The small-cap Russell 2000 index rose 2.1% on the back of lower interest rates, signaling reduced operating costs and greater profits.

(With inputs from agencies.)