In a strong cross-asset rally, stocks, bonds, and commodities climbed to fresh all-time highs on Federal Reserve day, marking the best performance for such an event in 2024. The S&P 500 moved closer to the 6,000 mark, setting its 49th record high this year, following a quarter-point rate cut by the Federal Reserve. Treasury yields dropped across the board, while the dollar posted its largest decline since August.
Fed Chair Jerome Powell highlighted the strength of the U.S. economy, though he refrained from indicating whether another rate cut will be considered in December. The Fed unanimously adjusted the federal funds rate to a range of 4.5% to 4.75%, citing easing labor market conditions and steady inflation progress towards the 2% goal, though it remains slightly elevated.
The S&P 500 rose 0.7%, with the Nasdaq 100 up 1.5%. The “Magnificent Seven” tech giants gained 2.3%. However, JPMorgan Chase & Co. dropped 4.3% after an analyst downgrade, and bank stocks saw a 2.7% decline after the previous day’s strong gains. Lyft Inc. surged 23% on a positive earnings outlook, buoying investor sentiment further.
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