Stocks jump to new highs as Fed buzz lifts markets
Stocks on Wall Street rose to build on a record-setting rally on Thursday as relieved investors continued to celebrate the Federal Reserve’s signals it will delay but not slow rate cuts.
The S&P 500 (^GSPC) rose 0.5%, surpassing 5,250. The Dow Jones Industrial Average (^DJI) gained roughly 300 points or 0.5% to creep closer to the 40,000 mark, while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.6%.
The stock indexes closed Wednesday at all-time highs after the Fed put to rest investors’ worries that coming cuts to borrowing costs would be less deep than forecast. Policymakers stuck to their outlook for three rate cuts in 2024, despite sticky inflation data that might have led to a scaling-back in easing.
A sea of green for stocks worldwide followed the “dot plot” forecasts and Chair Jerome Powell’s lack of alarm over the Fed reaching its inflation goal. Gold (GC=F) jumped to a record above $2,200 an ounce.
With six weeks until the next Fed policy meeting in May, other drivers for stocks are now likely to come into focus. While AI growth hopes have provided a boost to techs, there were signs of broadening in the market’s relief rally.
Read more: What the Fed rate decision means for your money
Elsewhere, the Swiss National Bank stole a march on the Fed by lowering interest rates on Thursday. The surprise move made it the first central bank to pull back and was seen as boosting confidence that tightening has peaked in leading economies.
On the corporate front, investors were keeping a close eye on Reddit (RDDT)’s is debut on the NYSE on Thursday. The social media platform priced its IPO at $34 per share for a valuation of $6.4 billion.
Among big movers, Micron (MU) shares jumped roughly 15% after the memory chip maker’s strong current-quarter revenue forecast amid demand for its AI hardware.
Apple (AAPL) shares sank roughly 3% after the iPhone maker was hit with an anti-trust lawsuit from the Department of Justice.
Live10 updates
-
-
Industrials, Consumer Discretionary lead S&P 500 rally
The S&P 500 (^GSPC) is up about 0.6% in afternoon trade and once again it is sectors other than tech leading the charge.
As was the case following yesterday’s Federal Reserve press conference that included the central bank upgrading its outlook for economic growth this year, Industrials (XLI) and Consumer Discretionary (XLY) are leading the eleven sectors on the day.
Source: Yahoo Finance -
-
-
-
-
Read More:Stocks jump to new highs as Fed buzz lifts markets