OAN Staff James Meyers
11:50 AM – Thursday, September 19, 2024
Wall Street had another big day with the Dow and S&P 500 hitting another intraday record high, just a day after the Federal Reserve cut interest rates by half-a-percentage point and forecasted that more cuts could be coming.
Advertisement
The Dow Jones Industrial Average jumped 394 points, or 1%, to 41,897. The blue-chip index increased by almost 600 points to an all-time high of 42,105.01.
The S&P 500 gained 1% as the Nasdaq skyrocketed 453 points, or 2.6%.
Additionally, rate-sensitive growth stocks that have led much of this year’s rally rose. Tesla gained 4.2%, Microsoft added 2%, and Apple went up 2.6%.
Meanwhile, semiconductor stocks like Nvidia rose 4.7%, while advanced Micro Devices gained 3.5% and Broadcom increased 3.8%, causing the Philadelphia SE Semiconductor Index up 3.6%.
The Russell 2000 index increased 1.7% with the broader market, as a lower interest environment could cause lower operating costs and greater profits for credit-dependent companies.
After its major announcement on Wednesday, the Fed forecasted rates to fall by another half-a-percentage point by the end of the year and unveiled macroeconomic projections that analysts say where growth is steady and inflation and unemployment stay low.
“There’s a delayed reaction to the Fed’s rate cut … the claims came in low, so it’s only going to help fuel the idea that a soft landing is in play,” said Ross Mayfield, investment strategist at Baird.
“The guidance for plenty more cuts by the end of 2025 should open up (rate-sensitive) sectors to re-engage and expand.”
There is now just over a 63% chance that the central bank will lower interest rates by 25 basis points at its November meeting, according to the CME Group’s FedWatch tool.
BofA Global Research now expects a total of 75 bps rate cuts by the end of 2024, compared to the 50 bps predicted previously.
September usually hasn’t been kind for U.S. equities with the S&P 500 hitting an average loss of 1.2% since 1928.
Bank of America and Wells Fargo advanced more than 1% each after the big banks lowered their prime rates.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
Advertisements below