Stocks surged on Thursday as investors celebrated the Federal Reserve's significant half-point interest rate cut.
The Dow climbed 522 points, or 1.3%, hitting a new record by surpassing the 42,000 mark for the first time. The S&P 500 gained 1.7%, crossing 5,700 for the first time and closing at an all-time high, while the Nasdaq Composite rose 2.5%.
Tech stocks led the rally: Nvidia shares jumped 4%, Tesla rose 7.4%, Meta Platforms gained 3.9%, and Apple climbed 3.7%.
The momentum carried into Friday's trading in Asia. Japan's Nikkei closed 1.5% higher, South Korea's Kospi was up 0.5%, and Hong Kong's Hang Seng gained 1.4% by late afternoon local time.
In Europe, markets opened slightly lower on Friday following strong gains the previous day. The Stoxx 600 index fell 0.5% by 4:31 a.m. ET, while Germany's DAX and France's CAC 40 were down 0.9% and 0.8%, respectively. London's FTSE 100 dipped 0.6%.
On Wednesday, the Fed implemented a half-point rate cut, its first since the Covid-19 pandemic, lowering rates from a 23-year high. This larger-than-expected cut surpassed the smaller quarter-point reduction many investors had anticipated.
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