Wall Street Moves Higher

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Wall Street Moves Higher

Wall Street Moves Higher After 0.50% Rate Cut

The US stock indices are trending higher on Thursday, including the S&P 500, which has made a new intraday record. All of this positivity is coming after the Federal Reserve made a deeper cut to the interest rate.

In fact, more rate cuts are also on the horizon, with a chance of another 25 bps rate cut in November. This shift in the Federal Reserve's monetary policy was welcomed by the growth stocks, which are usually rate sensitive.

Tesla Gains 4.2%, Microsoft Up By 2%

After the rate cut, Microsoft's stock gained 2%, while Apple (AAPL) also moved up by 2.6%. Tesla (TSLA), which is a big name in the US stock market, also moved up by 4.2%.

Similarly, other stocks, such as NVDA and AMD, also moved up by 4.7% and 3.5%, respectively. It seems that the overall sentiment in the tech sector is very positive which has also helped the S&P 500 to move higher.

Broadcom's (AVGO) stock price also gained 3.8% during the day, which is in line with the overall positive sentiment of the market.

Another big gainer for the day was Russell 2000, which added 1.7% to its value. The overall effect of the rate cut was very positive, as it would mean more profits and lower operating costs for the companies.

If we look around, DJIA is up by 0.94% (391 points), while the S&P 500 is up by 1.29% (72 points). As for the Nasdaq Composite index, it has gained 2.15% which is equal to 377 points during the day.

The S&P 500 has a total of 11 sectors and out of these, around 9 were positive for the day. The sector that gained the most was tech, with a collective gain of 2.8%.

Experts believe that the Federal Reserve will move forward with yet another 50 bps rate cut in November or December.

The recent data for the jobless claims is also promising but the markets will likely wait for the NFP report to get a better insight.

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