The US stock market experienced a remarkable surge on Wednesday, reaching new heights fueled by a combination of factors, including the Federal Reserve’s unexpected decision to cut interest rates for the first time in over four years and the strong performance of tech giants. This bold move by the Fed injected a wave of optimism into the market, leading to a significant rally across major indices.
The Dow Jones Industrial Average closed 1.3% higher at 42,025.19, marking a new all-time high. The S&P 500, also reaching an unprecedented peak, climbed 1.7% to 5,713.64. The Nasdaq, known for its heavy concentration of tech companies, surged by a robust 2.5% to 18,013.98. This impressive market rally was driven in large part by the so-called “Magnificent Seven” tech giants, each of which recorded impressive daily gains ranging from 1.5% to 4.5%.
Among the top performers, Tesla Inc. (TSLA) stood out, with its stock soaring by 7.36% to close at $243.92. The electric vehicle maker’s shares reached an intraday high of $244.24, driven by the positive sentiment surrounding the Federal Reserve’s rate cut, which is expected to benefit growth-oriented companies like Tesla.
Nike Inc. (NKE) also made headlines, with its shares experiencing a slight increase of 0.10%, closing at $80.98. The stock’s performance was overshadowed by the announcement of a CEO transition after the market close. The company revealed that longtime company veteran Elliott Hill will take over as president and CEO, effective October 14. Hill will also join the board of directors and the executive committee. Current president and CEO John Donahoe will retire from his role on October 13, but will remain an advisor until January 31, 2025, to facilitate a smooth transition. This announcement led to a 9% jump in Nike’s shares during after-hours trading.
Alibaba Group Holding Ltd. (BABA) experienced a significant surge, with its stock rising by 4.82% to close at $88.49. The shares reached an intraday high of $88.57, driven by the company’s announcement of the launch of over 100 new AI models. This news sparked excitement among investors, leading to a 4% rise in Alibaba’s shares during premarket trading.
FedEx Corp. (FDX) saw a modest increase of 0.74%, closing at $300.39. The stock hit an intraday high of $308, but faced pressure after the company reported its first-quarter earnings after the market close. While the company’s revenue and earnings per share (EPS) missed estimates, the key highlight was a lower-than-expected guidance for the upcoming quarters, leading to a slight dip in its shares.
Trump Media & Technology Group Corp. (DJT) experienced a decline of 5.89%, closing at $14.7. The stock reached an intraday high of $15.37 but faced selling pressure as lockup restrictions preventing certain insiders from selling shares were set to expire.
The day’s trading showcased a complex interplay of factors influencing stock prices, with the Federal Reserve’s rate cut, company announcements, and investor sentiment playing crucial roles. As the market continues to navigate a dynamic landscape, investors are closely watching for further developments and clues about the future direction of the economy and corporate performance.