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DailyBubble News

Stocks jump to new highs as Fed buzz lifts markets

Stocks on Wall Street continued to rise, building on a record-setting rally as investors celebrated the Federal Reserve’s signals that it will delay, but not slow, rate cuts. The S&P 500 rose 0.3% to hit a fresh high of 5,241, while the Dow Jones Industrial Average gained roughly 270 points or 0.7% to approach the 40,000 mark. The tech-heavy Nasdaq Composite also moved up 0.2%.

The stock indexes had closed at all-time highs after the Fed alleviated worries that future cuts to borrowing costs would be less significant than expected. Policymakers maintained their outlook for three rate cuts in 2024, despite concerns about inflation data. This news led to a global surge in stock prices, with gold jumping to a record high above $2,200 an ounce.

Looking ahead, investors are now focusing on other drivers for stocks, including the growth of AI technology and signs of a broadening relief rally in the market. Additionally, the Swiss National Bank made a surprise move by lowering interest rates, becoming the first central bank to do so and boosting confidence that tightening has peaked in leading economies.

On the corporate front, investors were closely watching Reddit’s debut on the NYSE, which saw the social media platform’s shares jump nearly 50% from its IPO price of $34 per share. However, Apple shares faced a setback, sinking more than 4% after the tech giant was hit with an antitrust lawsuit from the Department of Justice.

Overall, the market remains optimistic following the Fed’s announcements, with investors eagerly anticipating future developments in the coming weeks. Meanwhile, Reddit’s IPO and other key events continue to shape the trajectory of the stock market.

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