Wall Street is experiencing a full-fledged risk-on mode, driven by the Federal Reserve’s landmark decision to slash interest rates by 50 basis points. This move signals further cuts as inflation nears the central bank’s target, injecting a dose of optimism into the market.
The S&P 500 and Dow Jones both soared to fresh record highs during the morning session in New York, fueled by strong performances from the “Magnificent Seven” tech giants. These tech titans collectively added over $500 billion in market value by midday, boosting their combined market capitalization to a staggering $15.9 trillion.
Tesla Inc. (TSLA) led the charge, surging nearly 7% and hitting a two-month peak, while NVIDIA Corp. (NVDA) climbed 5%, driving the semiconductor sector higher. The iShares Semiconductor ETF (SOXX) jumped 4.6%, completely erasing its September losses.
The Nasdaq 100, heavily influenced by the tech sector, rose 2.9%, on track for its strongest session in over a month and outperforming other major indices. Small caps joined the rally, with the Russell 2000 index surging 2%.
Commodities rallied across the board, with gold, silver, and copper increasing by 1.2%, 3.8%, and 1.8%, respectively. Oil prices, tracked by the United States Oil Fund (USO), spiked over 3%. The bullish sentiment extended to cryptocurrencies, with Bitcoin (BTC/USD) rising over 2%, poised to close at its highest level since late August.
The strong market performance was reflected in major indices:
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Nasdaq 100:
19,905.70 (2.9% gain)*
Russell 2000:
2,249.90 (2.0% gain)*
S&P 500:
5,720.74 (1.8% gain)*
Dow Jones:
42,002.90 (1.2% gain)According to Benzinga Pro data, key ETFs mirrored the overall market sentiment:
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SPDR S&P 500 ETF Trust (SPY):
1.8% higher to $571.52*
SPDR Dow Jones Industrial Average (DIA):
1.2% higher to $421.23*
Invesco QQQ Trust Series (QQQ):
2.8% higher to $484.99*
iShares Russell 2000 ETF (IWM):
1.9% higher to $223.63The Technology Select Sector SPDR Fund (XLK) outperformed, up 0.2%, while the Utilities Select Sector SPDR Fund (XLU) lagged, down 0.9%.
Individual companies also saw strong moves. Darden Restaurants Inc. (DRI) soared 9% in response to its strong quarterly earnings and bullish outlook for upcoming quarters. FactSet Research Systems Inc. (FDS) also rallied 5% on the back of its earnings report.
Companies expected to report earnings after the close include FedEx Corp. (FDX) and Lennar Corp. (LEN).
