FX.co ★ US Equities Set Sights on Fresh Record Close

U.S. stocks soared to unprecedented levels on Thursday as investors welcomed the Federal Reserve's shift towards more accommodative monetary policy and anticipated further interest rate cuts. All three major indices reached new records: the S&P 500 increased by approximately 0.6%, the Nasdaq 100 climbed 1.1%, and the Dow Jones Industrial Average advanced by more than 150 points. Investors applauded the Fed's quarter-point rate cut and its indication of two more reductions within the year, interpreting these moves as a strategic shift aimed at stimulating growth rather than solely focusing on inflation control. The rally was largely driven by significant gains in major tech stocks, notably Intel, whose shares surged over 23% following Nvidia's announcement of a $5 billion investment in joint chip development, with Nvidia's stock itself rising by more than 3%. Additionally, economic data showed a much larger-than-expected drop in initial jobless claims to 231,000 from a four-year high, alleviating some worries regarding weaknesses in the labor market.