The S&P 500 and Nasdaq Composite reached new record highs on Thursday, driven by a tech rally and a fresh interest rate cut from the Federal Reserve, following Donald Trump’s election victory. The Federal Reserve lowered its benchmark rate by 25 basis points to a range of 4.5% to 4.75%, a move widely anticipated by the market.
Investors responded positively, with the S&P 500 climbing 0.7% and the tech-heavy Nasdaq Composite advancing nearly 1.5%. Tech giants Nvidia and Amazon led the charge, pushing both stocks to new highs. The Dow Jones Industrial Average held steady, building on a 1,500-point surge that marked its strongest day since 2022. Meanwhile, the 10-year Treasury yield eased, dipping by 8 basis points to 4.34%, after recent gains in bond yields.
Optimism following Trump’s election win has bolstered stock momentum, with his proposed corporate tax cuts and deregulation policies anticipated to stimulate economic growth. Federal Reserve Chair Jerome Powell, during a press conference, emphasized that the election results would not alter the Fed’s near-term policy approach. When asked if he would consider stepping down if Trump requested, Powell responded with a firm “no.”
The market’s post-election rally highlights investors’ confidence in potential pro-business policies under the new administration, which many hope will fuel further economic expansion and enhance corporate earnings.
