Stocks on Wall Street rose on Thursday as relieved investors continued their record rally as they continued to cheer the Federal Reserve's signal that it would slow, but not slow, interest rate cuts.
The S&P 500 (^GSPC) rose 0.5% to above 5,250. The Dow Jones Industrial Average (^DJI) rose 0.5% to near $40,000, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.9%.
Stock indexes closed at record highs on Wednesday after the Federal Reserve eased investor concerns that future borrowing cost cuts would not be as large as expected. Policymakers stuck to their outlook for three rate cuts in 2024, despite volatile inflation data that could lead to a reduction in easing.
A sea of green has spread across stock markets around the world following the “dot plot” forecast and Chairman Jerome Powell's lack of vigilance over the Fed's inflation target. Gold (GC=F) soared to a record of over $2,200 per ounce.
With six weeks until the next Fed policy meeting in May, other factors in stock prices are likely to be the focus. While expectations for the growth of AI are providing a tailwind for tech companies, there were also signs that the recovery in market confidence is widening.
read more: What the Fed's interest rate decisions mean for your money
Elsewhere, the Swiss National Bank cut interest rates on Thursday, usurping the march to the Fed. The unexpected move marked the first time a central bank had withdrawn and was seen as increasing confidence in major economies that tightening had peaked.
On the corporate side, Reddit (RDDT) is poised to debut on the New York Stock Exchange on Thursday. The social media platform priced the IPO at the high end of a range of $31 to $34, giving it a valuation of $6.4 billion.
In a big move, Micron (MU) shares rose more than 18% after the memory chip maker forecast strong sales for the current quarter on the back of demand for AI hardware.
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