Stocks Surge as Fed Cuts Rates Amid Trump Presidency Resurgence

U.S. stocks rose sharply after the Federal Reserve cut interest rates by 25 basis points, amid optimism over Donald Trump's presidency. Major indexes hit their highest one-day gains in two years, driven by potential tax cuts and deregulations. Investor focus now shifts to future monetary policy communication.

On Thursday, U.S. stocks experienced a notable rise after the Federal Reserve announced a 25 basis point cut in interest rates. This decision came in the wake of Donald Trump's return to the presidency, a development that has invigorated the markets.

Investor expectations around Trump's potential economic policies, such as reducing corporate taxes and easing regulations, fueled the rally. The Dow Industrials and S&P 500 both witnessed their largest single-day percentage increases in two years.

Despite the interest rate cut, which remains moderately restrictive, eyes remain on the central bank for further insights into the trajectory of monetary policy. Analysts speculate that additional economic modifications may marginally affect growth and inflation forecasts.

(With inputs from agencies.)