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U.S. stocks closed higher on Thursday after the Federal Reserve announced its latest interest rate cut, extending the rally fueled by Donald Trump’s victory in the U.S. Presidential election a day earlier. The S&P 500 and Nasdaq closed at record highs, while the Dow ended nearly unchanged.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed less than 1 point, to close at 43,729.34 points, after recording its biggest post-election surge in 128 years in the earlier session.
The S&P 500 jumped 0.7% or 44.06 points, to finish at 5,973.10 points, hitting a new all-time high. Tech, real estate, communication services and consumer discretionary stocks were the biggest gainers.
The Real Estate Select Sector SPDR (XLRE) rose 1.2%. The Technology Select Sector SPDR (XLK) gained 1.7%, while the Consumer Discretionary Select Sector SPDR (XLY) and Communication Services Select Sector SPDR (XLC) each rose 1.3%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1.5% or 285.99 points to end at a fresh high of 19,269.46 points.
The fear-gauge CBOE Volatility Index (VIX) was down 6.58% to 15.20. Advancers outnumbered decliners on the NYSE by a 1.94-to-1 ratio. On the Nasdaq, a 1.18-to-1 ratio favored advancing issues. A total of 16.78 billion shares were traded on Thursday, higher than the last 20-session average of 12.46 billion.
Federal Reserve’s Rate Cut Fuels Rally
The Federal Reserve announced a 25-basis point interest rate cut at the end of its two-day November policy meeting on Wednesday. Market participants had expected a rate cut of the same size and the Fed didn’t disappoint.
Investors are now looking forward to comments from the central bank officials that will give them a clearer picture of the Fed’s path of monetary policy.
Federal Reserve Chairman Jerome Powell said that the central bank is “feeling good” about the economy’s health, signaling that the Fed would prefer small rate cuts going forward.
The rate cut announcement lifted investors’ sentiment. Stocks built on Wednesday’s rally, fueled by Trump’s landslide victory in the U.S. Presidential election that saw the Dow gaining more than 1,500 points and the S&P recording its best post-election day in history.
Investors are expecting Trump to lower corporate taxes and deregulation as they see the new President as someone who openly comments on issues ranging from the stock market to the dollar. However, concerns about a potential jump in inflation have surfaced due to expectations of ongoing large government deficits and increased tariffs.
Investors also closely watched the latest jobless claims report. The Labor Department reported that jobless claims totaled 221,000 for the week ending Nov 2, increasing 3,000 from the previous week’s revised level of 218,000. The four-week moving average was 227,250, a decrease of 9,750 from the previous week’s revised average of 237,000.
Continuing claims came in at 1,892,000, an increase of 39,000 from the previous week’s revised level of 1,853,000. The 4-week moving average was 1,875,500 an increase of 8,500 from the previous week's revised average of 1,867,500.
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Stock Market News for Nov 8, 2024
U.S. stocks closed higher on Thursday after the Federal Reserve announced its latest interest rate cut, extending the rally fueled by Donald Trump’s victory in the U.S. Presidential election a day earlier. The S&P 500 and Nasdaq closed at record highs, while the Dow ended nearly unchanged.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) shed less than 1 point, to close at 43,729.34 points, after recording its biggest post-election surge in 128 years in the earlier session.
The S&P 500 jumped 0.7% or 44.06 points, to finish at 5,973.10 points, hitting a new all-time high. Tech, real estate, communication services and consumer discretionary stocks were the biggest gainers.
The Real Estate Select Sector SPDR (XLRE) rose 1.2%. The Technology Select Sector SPDR (XLK) gained 1.7%, while the Consumer Discretionary Select Sector SPDR (XLY) and Communication Services Select Sector SPDR (XLC) each rose 1.3%. Eight of the 11 sectors of the benchmark index ended in positive territory.
The tech-heavy Nasdaq climbed 1.5% or 285.99 points to end at a fresh high of 19,269.46 points.
The fear-gauge CBOE Volatility Index (VIX) was down 6.58% to 15.20. Advancers outnumbered decliners on the NYSE by a 1.94-to-1 ratio. On the Nasdaq, a 1.18-to-1 ratio favored advancing issues. A total of 16.78 billion shares were traded on Thursday, higher than the last 20-session average of 12.46 billion.
Federal Reserve’s Rate Cut Fuels Rally
The Federal Reserve announced a 25-basis point interest rate cut at the end of its two-day November policy meeting on Wednesday. Market participants had expected a rate cut of the same size and the Fed didn’t disappoint.
Investors are now looking forward to comments from the central bank officials that will give them a clearer picture of the Fed’s path of monetary policy.
Federal Reserve Chairman Jerome Powell said that the central bank is “feeling good” about the economy’s health, signaling that the Fed would prefer small rate cuts going forward.
The rate cut announcement lifted investors’ sentiment. Stocks built on Wednesday’s rally, fueled by Trump’s landslide victory in the U.S. Presidential election that saw the Dow gaining more than 1,500 points and the S&P recording its best post-election day in history.
Investors are expecting Trump to lower corporate taxes and deregulation as they see the new President as someone who openly comments on issues ranging from the stock market to the dollar. However, concerns about a potential jump in inflation have surfaced due to expectations of ongoing large government deficits and increased tariffs.
Big tech stocks led Thursday’s rally, with shares of Apple Inc. ((AAPL - Free Report) ) increasing 2.4%. Shares of Meta Platforms, Inc. ((META - Free Report) ) and Netflix, Inc. ((NFLX - Free Report) ) jumped 3.4% and 2.1%, respectively. Netflix carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
Investors also closely watched the latest jobless claims report. The Labor Department reported that jobless claims totaled 221,000 for the week ending Nov 2, increasing 3,000 from the previous week’s revised level of 218,000. The four-week moving average was 227,250, a decrease of 9,750 from the previous week’s revised average of 237,000.
Continuing claims came in at 1,892,000, an increase of 39,000 from the previous week’s revised level of 1,853,000. The 4-week moving average was 1,875,500 an increase of 8,500 from the previous week's revised average of 1,867,500.