Wall Street Roars Back: Dow and S&P 500 Shatter Records a Day After Historic Rate Cut
Dow Surges 1.3%, Breaks 42,000 Mark for the First Time; S&P 500 Also Rises Above 5,700
Market Optimism Revives Due to Favorable Unemployment Indicators
The major stock indices of the New York Stock Exchange closed at an all-time high as optimism revived due to the impact of the Federal Reserve’s (Fed) ‘big cut’ (0.50% point) the previous day.
The Dow Jones Industrial Average closed at 42,025.19, up 522.09 points (1.26%) from the previous day. The S&P 500 index rose 95.38 points, or 1.70%, to 5,713.64, and the tech-heavy Nasdaq index rose 440.68 points, or 2.51%, to 18,013.98.
[로이터 연합뉴스 자료사진. 재판매 및 DB 금지] photo@yna.co.kr
Large-Cap Tech Stocks Lead the Rally
A rally centered on large technology stocks followed the revived market optimism following the Fed’s big cut the day before. The weekly new jobless claims figure released that day also fell below expectations to its lowest level in four months, easing concerns about a sharp economic downturn.
Large technology stocks such as artificial intelligence (AI) leader Nvidia (3.97%), Tesla (7.36%), and Meta (3.93%) contributed to raising the index on this day.
“The Fed is presenting a pretty strong economic picture, so we’re seeing money flowing back into sectors that underperformed this quarter,” said James Reagan, director of asset management at DA Davidson.
Gold and Oil Prices Rise
International gold prices also rose by 1%, approaching $2,600 per ounce. According to Reuters, the spot price of gold was trading at $2,590.47 per ounce, up 1.2% from the previous day, at 2:02 p.m. Eastern Standard Time.
Gold futures prices also rose. On the New York Mercantile Exchange, the December gold futures contract closed at $2,614.60 per ounce, up 0.6% from the previous day.
International oil prices also rose due to heightened geopolitical tensions in the Middle East. On this day, Brent crude oil futures for November delivery on the ICE Futures Exchange closed at $74.88 per barrel, up $1.23 (1.7%) from the previous day.