Nasdaq concluded the trading day on a positive note, following the Federal Reserve’s decision to reduce interest rates by 25 basis points. The tech-heavy Nasdaq experienced an increase of 0.9%, translating to a rise of 209.40 points, concluding the trading session at 22,470.73. This move was accompanied by the assurance of additional rate cuts in the coming year, which has sparked optimism regarding potential support for the economy in its recovery efforts. All three major indexes concluded the trading session in positive territory.

The Dow Jones Industrial Average experienced an increase of 0.3%, translating to a rise of 124.10 points, ultimately closing at 46,142.42 points. The S&P 500 experienced an increase of 0.5%, translating to a rise of 31.61 points, ultimately concluding the day at 6,631.96 points. Stocks in the technology and industrial sectors emerged as the most significant gainers. The Technology Select Sector SPDR experienced an increase of 1.7%. The Industrials Select Sector SPDR experienced an increase of 1.1%. Out of the 11 sectors that comprise the benchmark index, seven concluded the trading session in positive territory. The CBOE Volatility Index, often referred to as the fear gauge, experienced a decline of 0.13%, settling at 15.70. On the New York Stock Exchange, the number of advancers surpassed that of decliners, presenting a ratio of 1.87-to-1. On the Nasdaq, a ratio of 2.5-to-1 indicated a preference for advancing issues. On Thursday, the trading volume reached an impressive total of 19.30 billion shares, surpassing the last 20-session average, which stood at 16.67 billion shares.

On the Nasdaq, the market recorded 156 new highs alongside 42 new lows. Within the S&P 500, a notable occurrence was observed with 31 new 52-week highs being established, alongside eight new lows recorded. On Wednesday, US market experienced a tumultuous trading session following the Federal Reserve’s announcement of a quarter percentage point interest rate cut. On Thursday, investors re-entered the market with a sense of renewed vigor, fueled by optimism that the anticipated rate cut will serve to bolster the economy. All three major indexes reached unprecedented all-time intraday highs. On Thursday, the most significant advancements were observed among small-cap companies, as evidenced by the Russell 2000 small-cap index, which experienced an increase of 2.4%. Small-cap companies are poised to gain significantly from the recent rate cuts, as they predominantly depend on external funding sources. The recent rate cut by the Federal Reserve was widely expected, and investors displayed a keen interest in understanding the trajectory of future rate cuts. On Wednesday, Federal Reserve Chairman Jerome Powell articulated that the decision to implement a rate cut was chiefly driven by a deteriorating labor market. He emphasized the increasing risks associated with employment in relation to inflation. He also cautioned that the risks associated with inflation must be handled with great care. Nevertheless, he still suggested that there would be two additional rate cuts by the conclusion of this year. In a display of optimism, investors responded positively to the decision, resulting in a notable rally in stocks on Thursday.

On Thursday, the rally was predominantly driven by technology stocks. Intel Corporation emerged as one of the most significant gainers, achieving one of its most remarkable days in decades. Intel’s shares experienced a remarkable surge of 22.8%, marking its most significant single-day gain since October 1987. This impressive rise followed the announcement from NVIDIA Corporation regarding a substantial investment of $5 billion in Intel, aimed at the collaborative development of data center and PC chips. NVIDIA’s shares concluded the trading session with an increase of 3.5%. Intel currently holds a Zacks Rank of #3, indicating a Hold position. For those interested, the full compilation of today’s Zacks #1 Rank stocks is available for viewing here.