Wall Street ended Thursday's session with Major indices rise more than 1%The rise was driven by a 50 basis point interest rate cut by the Federal Reserve Bank of North America, but also a decline in the number of unemployment claims in the country. The combination of these factors has eased concerns about a possible economic recession in the United States.
The Standard & Poor's 500 Index rose 1.7% to 5,713.64 points, a record closing level. During the session, it achieved a new historical high – His record is 39 in 2024. – At 5,733.57 points, the growth this year extends to about 20%. The Nasdaq Composite Index recorded the largest increase of 2.51% to 18,013.98 points, while the Dow Jones Index advanced by 1.26% to 42,025.19 points.
The Federal Reserve's bold start to cutting interest rates – for the first time in four years – It raised hopes that the central bank could avoid recession.But data released on Thursday also showed that Jobless claims fall to lowest level since MayAfter noting that the labor market remains healthy, despite slowing hiring.
“The aggressive rate cut appears to have increased the perception of a soft landing,” Jonathan Cohen of Nomura Securities International told Reuters, referring to economists' ideal scenario in which inflation cools without triggering a recession.
The number of people claiming unemployment benefits in the United States fell by 12,000 from the previous week, to 219,000 in the period ended September 14, well below market expectations, which had indicated 230,000 unemployment claims.
“Despite some volatility following the Fed cut, the S&P 500’s bullish momentum remains intact,” Fawad Razaqzada of City Index told Bloomberg. “The Fed’s decision to cut interest rates by 50 basis points was widely welcomed by investors. The move was seen as a bold but necessary step to ease economic concerns without sending panic signals reminiscent of the 2008 financial crisis,” he said.
In terms of major market moves, Tesla shares stood out positively, advancing more than 7%, driven mainly by the monetary policy easing announced on Wednesday afternoon.
Reaping the benefits of lower interest rates was also the goal. Technology heavyweight, which ended the session up more than 1%.Among the “big tech companies,” Nvidia rose 3.97%, Meta advanced 3.93%, Apple grew 3.71%, Amazon rose 1.85%, Microsoft rose 1.83%, and Alphabet accelerated 1.51%.
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