US Stock Market Hits Record High After Federal Reserve Cuts Interest Rates

The New York stock market has reached a record high following the US Federal Reserve’s decision to cut interest rates for the first time in four and a half years.

Positive employment indicators have also contributed to growing expectations of a soft landing for the US economy.

Record Highs on the New York Stock Exchange

The three major indexes on the New York Stock Exchange have hit record highs, with the Dow Jones breaking the 42,000 mark for the first time ever, and the S&P 500 also setting a new record.

Big tech stocks have seen significant gains, with Nvidia and Apple each rising by nearly 4%. The Nasdaq has increased by more than 2.5%, breaking the 18,000 mark.

Positive Employment Figures

The US Labor Department has reported that initial unemployment claims fell to 219,000 last week, the lowest in four months. This figure is also lower than expert forecasts.

The Federal Reserve has explained that the interest rate cut was a preemptive measure to achieve a soft landing before the employment situation worsens.

“The time to support the labor market is not when layoffs start, but when the labor market is strong. That’s where we are. We’ve actually started a rate-cutting cycle, and we’ll see.”

— Jerome Powell, Chairman of the US Federal Reserve

Decreased Market Volatility

The so-called ‘fear index’, which forecasts volatility in the US stock market, has fallen by more than 10% to 16.

Lim Kyeong-ah, special correspondent in New York, reports on the latest developments in the US stock market.