Dow Skyrockets To All-Time High After Fed Delivers Rate Cut – One America News Network


NEW YORK, NEW YORK - SEPTEMBER 18: Traders work on the floor of the New York Stock Exchange on September 18, 2024 in New York City. The Federal Reserve is expected to announce its first interest rate cut since March 2020. (Photo by Stephanie Keith/Getty Images)
Traders work on the floor of the New York Stock Exchange on September 18, 2024 in New York City. (Photo by Stephanie Keith/Getty Images)

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

Share this post!





Source link

James Meyers
Author: James Meyers

Be the first to comment

Leave a Reply

Your email address will not be published.


*