New York Dow Jones Stock Exchange Index Reaches All-Time High

The New York Dow Jones Stock Exchange index closed at an all-time high on Thursday, September 19, with the Dow Jones soaring above 42,000 points, while the S&P 500 also closed at an all-time high. This surge follows the United States Federal Reserve’s (Fed) announcement of an interest rate cut of 0.50% and indications of further interest rate cuts.

The Dow Jones Industrial Average closed at 42,025.19 points, up 522.09 points or +1.26%, the S&P 500 index closed at 5,713.64 points, up 95.38 points or +1.70%, and the Nasdaq index closed at 18,013.446 points, up 1842 +1%.

Federal Reserve Announces Interest Rate Cut

The Fed announced an interest rate cut of as much as 0.50% at its meeting on Wednesday. In terms of the policy interest rate forecast or Dot Plot, Fed officials indicated a further 0.50% interest rate cut by the end of this year. It also sent a signal to cut interest rates by 1.00% in 2025 and cut interest rates by 0.50% in 2026.

The Fed statement said: The Fed committee is increasingly confident that inflation will remain under control. This is consistent with what Fed Chairman Jerome Powell said after the meeting: Inflation is on the way to slow down. Although the US economy is still going strong And he does not see any signs that the economy is likely to go into recession.

Market Reaction and Analysis

James Regan, director of wealth management research at DA Davidson, said the Fed had shown a strong picture of the economy. which is a factor in attracting money back into the market again This includes stocks that have performed poorly this quarter.

The market was also supported by strong labor data. by the US Department of Labor Revealed, the number of first-time applicants for unemployment benefits fell by 12,000 to 219,000 last week. This was the lowest level in four months and below analysts’ expectations of 230,000.

Stock Performance and Sector Analysis

Eight of the 11 stocks in the S&P 500 index closed in positive territory, led by the Technology index, which rose 3.08%, followed by the Luxury Goods Index, which rose 2.20%. a decrease of 0.58% and 0.57%, respectively.

Technology stocks with high market caps saw strong buying, with Tesla rising 7.3%, Apple 3.7%, Meta Platforms 3.9% and Nvidia 4%, helping the semiconductor index In the Philadelphia Stock Exchange (PHLX Semiconductor Index) rose 4.3 %.

The Russell 2000 Index, a broad index of stocks with low market caps, rose 2.1% as investors said lower interest rates would help companies in the sector reduce operating costs and increase profits.

Economic Data and Outlook

Regarding the economic data reported last night, the National Association of Realtors (NAR) said that second-hand home sales fell 2.5% to 3.86 million units in August. compared monthly and below analysts’ expectations of 3.92 million units.

By Rattana Phongtawich