Wall Street Soars as Fed's Rate Cut Sparks Investor Optimism

Major Wall Street indexes reached new highs on Thursday after the Federal Reserve initiated its first rate-cutting cycle in over four years. This move invigorated investor interest, boosting tech stocks and smaller companies alike. Treasury yields rose, while global markets, including European indexes, also saw gains.

Major Wall Street indexes broke record highs on Thursday after global counterparts booked gains and Treasury yields rose, marking the start of the Federal Reserve's first rate-cutting cycle in more than four years. Investors' risk appetite was heightened by the decision.

Fed Chair Jerome Powell indicated no significant slowdown risks, and policymakers projected further benchmark rate reductions. As a result, risk assets rallied, increasing gains particularly in tech stocks like Tesla and Meta. The Nasdaq Composite surged 2.51% to 18,013.98 points.

The Dow Jones Industrial average climbed 1.26% to 42,025.19 points, and the S&P 500 advanced 1.70% to a record 5,713.64 points. Smaller companies, expected to benefit from reduced costs, also saw a rise, and the Russell 2000 index gained 2.1%. In Europe, the STOXX 600 index rose over 1%, while Treasury yields and commodity prices like oil also increased.

(With inputs from agencies.)