Wall Street: New historically high for S&P 500 After Fed Increase Rates

Shares in Wall Street They closed on Thursday (18.9.25) at historical levels, with the smallest capitalizations scoring the greatest boost. The US Federal Bank has left this week a clear message that it is going to relax interest rates, which has revitalized the investment climate and fueled hopes of accelerating economic growth.

The S&P 500 closed 0.48% to 6,631.96 points, while Nasdaq Composite rose 0.95% to 22,470.73 points. Industrial Dow Jones added 124 points or 0.27%, reaching 46.142.42. Each of Wall Street’s key indicators set a single -day record, with the S&P 500 recording a 2.4% rise and returning to a historic high for the first time since November 2021.

Smaller capitalization companies have been in the center, as they traditionally benefit from lower interest rates, as they are often based on external funding and more closely followed by the financial cycle. On the contrary, large technological shares move more on the basis of trends, such as artificial intelligence.

However, the big technology players also participated in the rally. Intel jumped by 22.8% following Nvidia’s announcement that it would invest $ 5 billion in the chip manufacturer for common processor development for data centers and computers. Nvidia’s stock rose by 3.5%.

Profits came after an unstable meeting on Wednesday (17.9.25), When the Fed reduced – as expected – its basic interest rate by one quarter of the percentage unit. The Central Bank estimated that there would be two more reductions this year, which excited investors. Despite Jerome Powell’s statements that the move is part of the “risk management”, the market thought that priority is now the enhancement of growth rather than inflation.

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