The S&P 500 Index ($SPX) (SPY) Thursday closed up by +1.70%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +1.26%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +2.56%.
Stocks on Thursday rallied sharply, with the S&P 500 and Dow Jones Industrials posting new all-time highs and the Nasdaq 100 climbing to a 2-month. Stocks rallied worldwide Thursday after the Fed cut interest rates by an aggressive -50 bp on Wednesday. The Fed’s -50 bp rate cut and projections for another -50 bp of rate cuts this year have bolstered speculation the Fed will engineer a soft landing and sparked risk-on sentiment for asset markets. Stocks maintained their gains Thursday despite an increase in bond yields after US weekly initial unemployment claims fell more than expected to a 4-month low, a hawkish factor for Fed policy.
