S&P 500 and Nasdaq Hit Intraday Record Highs on Fed Rate-Cut Optimism
The S&P 500 and the Nasdaq Composite reached new intraday record highs on Thursday. Markets rallied on growing expectations of Federal Reserve interest rate cuts, while investors looked past the ongoing U.S. government shutdown.
Market Snapshot
By 09:54 a.m. ET, the Dow Jones Industrial Average rose 118.27 points, or 0.25%, to 46,559.37. The S&P 500 was up 8.65 points (0.13%) at 6,719.85, while the Nasdaq Composite gained 56.62 points (0.25%) to 22,811.78.
Earlier in the session, the S&P 500 touched 6,731.94 and the Nasdaq hit 22,900.60, setting new intraday highs.
Tech and Semiconductors Drive Gains
Technology stocks led the rally, with the sector up 0.3%. Nvidia gained 0.8%, while Broadcom rose 1% and Advanced Micro Devices (AMD) climbed 1.7%. These gains pushed the semiconductor index to a record level, boosting the Nasdaq further.
AMD rose after reports suggested Intel was in early talks to add the company as a foundry partner.
Industrials Rise, Consumer Stocks Lag
The Industrials sector added 0.4% on the S&P 500. Caterpillar hit a record high, advancing 2.4%. Meanwhile, consumer discretionary stocks fell 0.2%. Tesla slipped 0.5% despite reporting stronger-than-expected Q3 deliveries.
Fed Outlook and Labor Market Data
With official reports delayed by the government shutdown, traders turned to private data. A report from Challenger, Gray & Christmas showed fewer layoffs in September, but hiring plans were the weakest since 2009.
This followed a disappointing ADP National Employment Report, reinforcing expectations that the Federal Reserve may cut rates by 25 basis points at its next meeting.
“The longer the shutdown lasts, the more the Fed will feel inclined to continue to cut rates,” said Art Hogan, chief market strategist at B. Riley Wealth.
Key Stock Movers
- Equifax and TransUnion dropped 8.4% and 11.4% after FICO unveiled a new program allowing lenders access to credit scores without relying on credit bureaus. FICO shares soared 30.1%, leading the S&P 500.
- Occidental Petroleum fell 4.2% after announcing plans to sell its petrochemical division to Berkshire Hathaway for $9.7 billion.
On the NYSE, advancing stocks outnumbered decliners by a 1.3-to-1 ratio, while the Nasdaq posted the same ratio. The S&P 500 recorded 26 new 52-week highs, while the Nasdaq logged 90 new highs and 38 new lows.
