Thu Sep 19 18:09:21 UTC 2024: ## Wall Street Soars After Fed’s Aggressive Rate Cut, Tech Stocks Lead the Charge

**New York, September 19, 2024** – U.S. stock markets surged on Thursday, with the S&P 500 hitting a record high, as investors welcomed the Federal Reserve’s unprecedented half-percentage point interest rate cut. The Dow Jones Industrial Average also reached a record, while the tech-heavy Nasdaq Composite surged 3%, led by gains in tech giants like Nvidia and Apple.

The Fed’s move, its first rate reduction in over four years, came as a surprise to many, although economists and investors had widely anticipated a cut. While market odds favored a larger cut, few expected the Fed to act so aggressively.

The Fed’s decision sparked a mixed reaction initially, with major stock indexes fluctuating throughout Fed Chair Jerome Powell’s post-meeting press conference. However, the market ultimately closed higher, driven by the prospect of more accommodative monetary policy.

While the Fed expects to cut rates by another half percentage point by year’s end, traders are anticipating even deeper cuts. This sentiment was reflected in the strong performance of small-cap stocks, which are expected to benefit from lower interest rates. The Russell 2000 index climbed 2.1%, slightly outpacing the S&P 500’s gains.

However, analysts at Bank of America cautioned that lower rates may not be enough to give small caps a significant edge over their larger counterparts, citing ongoing economic uncertainty and a slowing economy.

The Fed’s rate cut also boosted “Magnificent Seven” tech stocks, including Meta, Alphabet, Tesla, Microsoft, Nvidia, Amazon, and Apple. The PHLX Semiconductor Index surged close to 5% on the day.

In other news, Darden Restaurants, the owner of Olive Garden, saw its shares jump over 7% following a report of improving sales trends and a new delivery partnership with Uber.

While the market is currently celebrating the Fed’s action, investors are watching key levels on the S&P 500 chart to gauge the sustainability of the rally. Analysts are particularly focused on the potential for a breakout from a symmetrical triangle pattern, which could push the index towards 6,300.

However, the market is still facing headwinds, including a slowing economy and rising inflation. The Fed’s next moves will be closely watched by investors, who are hoping that the rate cuts will help to stimulate economic growth and support the stock market’s recent gains.

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