Wall Street Hits Record Highs Amid Aggressive Fed Rate Cut

Wall Street indexes soared to record highs following the Federal Reserve's significant interest rate cut, which enhanced investor risk appetite. Major tech stocks like Microsoft and Apple saw gains, alongside smaller companies. Global markets reflected similar positivity, supported by lower U.S. jobless claims and a rise in Treasury yields.

Wall Street indexes soared to record highs on Thursday following the Federal Reserve's substantial interest rate cut, which whetted investors' risk appetite. The U.S. central bank's move on Wednesday signaled the start of its first interest rate cutting cycle in more than four years, ending a period of higher borrowing costs aimed at curbing inflation.

Fed Chair Jerome Powell, in a closely-watched statement, projected the benchmark rate would fall again, raising hopes of a 'soft landing,' where inflation cools without triggering a recession. Market gains were further bolstered by lower-than-expected jobless claims and a subsequent rally in U.S. government debt yields.

The tech-heavy Nasdaq Composite, the blue-chip Dow Jones Industrial average, and the benchmark S&P 500 all hit intraday record highs, with smaller companies also benefiting from the lower rates. International markets echoed Wall Street's optimism, with MSCI's world stocks index and European indexes also booking gains. Meanwhile, currency markets saw the dollar edge lower and commodities like oil and gold rise sharply.

(With inputs from agencies.)