U.S. Stocks Leap as Fed Cuts Interest Rates Amidst Trump's Presidential Return

U.S. stocks surged following the Federal Reserve's 25 basis point interest rate cut, as Donald Trump's presidential return spurred investor optimism. The central bank's move reflects its assessment of a cooling job market amid inflation progress. Markets anticipate guidance on future monetary policies while political shifts influence economic outlooks.

U.S. stocks climbed on Thursday following the Federal Reserve's decision to cut interest rates by 25 basis points. This move is linked to market enthusiasm over Donald Trump's return to the U.S. presidency, which has reignited rallying sentiments.

The Fed's latest rate cut stems from a perceived easing in the labor market, while inflation appears to be stabilizing toward the central bank's 2% target. With the market largely anticipating the cut ahead of November's meeting, attention now shifts to potential future monetary policy signals from the central bank.

Investor confidence in Trump's potential corporate tax reductions and deregulation fueled significant gains across major indexes. The Dow Industrials and S&P 500 experienced their sharpest single-day gain in years, as economic resilience and political developments remain at the forefront of market speculation.

(With inputs from agencies.)