Following the Federal Reserve’s announcement to lower interest rates by half a percentage point on September 18, 2024, U.S. stock futures surged higher on Thursday. Dow Jones Industrial Average futures increased by 508 points, or 1.2%, while futures tied to the S&P 500 climbed 1.6% and Nasdaq 100 futures rose by 2.2%.
The Dow had closed lower on Wednesday immediately after the Fed’s decision. However, traders were optimistic on Thursday as weekly jobless claims fell by 12,000 to 219,000, significantly below estimates—suggesting the Fed might be achieving a soft landing for the economy.
The rate cut spurred a rally in tech stocks in premarket trading, with Nvidia and AMD shares jumping over 3% each and Micron Technology rising more than 2%. Other tech giants such as Meta and Alphabet also saw gains exceeding 2%. Stocks that benefit from lower rates made strides as well: financial titan JPMorgan Chase increased 1.3%, while industrial names like Caterpillar and Home Depot advanced roughly 2% each.
The Federal Reserve’s rate reduction to a range between 4.75% and 5% from 5.25% to 5.5% is the first such move in four years, surprising some investors due to its magnitude. Jeremy Siegel, professor emeritus at the University of Pennsylvania’s Wharton School of Business, praised the decision on CNBC’s “Squawk Box,” calling it “the best news I’ve heard from the Fed in years” and deeming it fantastic for both the market and the economy.
Stocks fluctuated throughout Wednesday afternoon but ultimately closed the session lower. Despite this, both the S&P 500 and the Dow initially hit new record highs immediately following the Fed’s announcement, underscoring the market’s initial enthusiasm before settling into a more tempered response.
Original Story https://www.cnbc.com/2024/09/18/stock-market-today-live-updates.html
Category :
Tags:
