Wall Street closes with significant gains after rate cuts

The NY stock market ended yesterday with a strong rise, after digesting the announcement of the US Federal Reserve (Fed) rate cut on Wednesday. Investors broadened their range of equity interest and major indices closed with sharp gains.

The Dow Jones (1.26%) was at 42,025 points and the S&P 500 (1.7%) at 5,714 units, both new records, while the Nasdaq gained 2.51% to 18,014On Wednesday, the New York stock market reacted negatively to the Fed’s decision to cut its rates by half a percentage point.

Some investors were disappointed by the speech by central bank chairman Jerome Powell, who was determined to moderate expectations about the bank’s future decisions.

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“This often happens when there are only a few hours of exchanges.“after the Fed meeting,” recalled Art Hogan of B. Riley Wealth Management. “The next day, the market usually recovers its spirits and that happened“, he added. Wall Street seems to have concluded that “lower rates will be good for markets,” according to the analyst. Traders flocked to a variety of stocks, starting with the most volatile ones, such as Tesla (7.4%), PayPal (6.1%) and Airbnb (5.2%).

Semiconductor companies, which have been extremely volatile for several months, also rose sharply. Nvidia, the star of the sector, gained 4%, Broadcom 3.9% and AMD 5.7%. Apple (3.7%) continued to rise after a few difficult days following the launch of the iPhone 16.

EFE