S&P 500, Nasdaq end at records again after Fed rate cut
AFP
7 Nov, 2024 09:37 PM2 mins to read
The S&P 500 and Nasdaq powered to fresh records after the Federal Reserve cut interest rates, extending a buoyant post-election rally.
While the Dow finished essentially flat, both the S&P 500 and Nasdaq jumped to new all-time highs, with large tech companies like Facebook parent Meta and Apple surging.
The tech-rich Nasdaq Composite Index led the indices, climbing 1.5 percent to 19,269.46.
The broad-based S&P 500 gained 0.7 percent to 5,973.10, while the Dow Jones Industrial Average was unchanged at 43,729.34.
The US Federal Reserve shrugged off political uncertainty in Washington and moved ahead with a quarter-point rate cut on Thursday, easing monetary policy further as inflation continues to cool.
Policymakers voted unanimously to lower the central bank’s key lending rate to between 4.50% and 4.75%, the Fed announced in a statement.
“Labour market conditions have generally eased” since earlier in the year, the Fed said, noting ongoing progress to bring inflation down toward the bank’s long-term target of 2%.
The rate cut builds on the Fed’s action in September, when it kicked off its easing cycle with a large reduction of half a percentage point, and pencilled in additional cuts for this year.
The Fed’s favoured inflation gauge eased to 2.1% in September, while economic growth has remained robust.
The labour market has also stayed strong overall, despite a sharp hiring slowdown last month attributed in large part to adverse weather conditions and a labour strike.
Fed chairman Jerome Powell faces questions from reporters and is expected to be quizzed about the economic impact of Republican Donald Trump’s victory in the US presidential race.
© Agence France-Presse
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