US stocks rallied on Wednesday as the Federal Reserve delivered a widely expected quarter-point rate cut and signalled a slower pace of easing ahead. The commentary from Chair Jerome Powell supported risk sentiment, helping major indices erase a two-day losing streak.
Wall Street recap
The Dow Jones Industrial Average surged 497.46 points, or 1.1 per cent, to close at 48,057.75, hitting a one-month high. The S&P 500 gained 0.7 per cent to end at 6,886.68, briefly crossing its previous record close of 6,890.89. The Nasdaq Composite rose 0.3 per cent to 23,654.16, marking its highest level in five weeks.
The rally strengthened in the early afternoon as Powell spoke, with the Dow up 1.31 per cent, the S&P 500 higher by 0.85 per cent, and the Nasdaq up 0.54 per cent at the intraday peaks.
The Fed cut interest rates for a third straight meeting, matching market expectations. Policymakers also projected limited easing in the months ahead, keeping the soft-landing narrative intact.
Indices edge closer to record levels
– The S&P 500 closed just 33 points below its 29 October lifetime high of 6,920.
– The Dow snapped a two-day decline and finished at its best level in a month.
– The Nasdaq ended the session 370 points shy of its 29 October record of 24,020.
– The Russell 2000 rose for the third consecutive day, hitting a fresh lifetime high and touching 2,577 for the first time.
Stocks in focus
– Apple halted a five-day losing streak.
– Meta Platforms slipped for the third straight session.
– Microsoft declined 2.74 per cent, breaking a four-day gaining streak and logging its sharpest single-day fall since 30 October.
– Netflix extended its slide for the sixth day, marking its longest losing run this year.
– Warner Bros Discovery jumped to a fresh lifetime high of USD 29.81 and is now up 181 per cent over six months.
Dollar and bond yields retreat
The US dollar index ended lower, breaking a four-day rising streak and slipping below 99 — its weakest close in six weeks.
The 10-year US Treasury yield fell below 4.15 per cent, down around 1 per cent for the day.
Commodities
Silver surged to an all-time high of USD 63.24 in global trade. On MCX, silver hit a new record of Rs 191,800, delivering a 117 per cent return so far this year. Silver has gained Rs 27,000 in just 10 days. Gold on MCX has risen Rs 2,731 over the past 10 days.