Fed Rate Cut Spurs U.S. Stocks Surge Amid Shutdown Woes
U.S. stocks rose after the Federal Reserve cut interest rates and announced limited Treasury securities purchases amid a government shutdown, impacting decision-making. Nvidia reached a $5 trillion valuation, boosting AI rally. Dow, S&P 500, and Nasdaq all showed gains. Megacap results from Meta, Microsoft, and Alphabet are anticipated.
U.S. stocks experienced a boost on Wednesday following the Federal Reserve's anticipated decision to cut interest rates by a quarter percentage point. The Fed also announced plans to initiate limited purchases of Treasury securities, a move expected to stabilize the market amid ongoing concerns.
However, Fed policymakers highlighted that the U.S. federal government shutdown has restricted their decision-making capacity, leading them to rely on whatever data is currently available. Despite these challenges, Nvidia marked a significant achievement by becoming the first company to reach a $5 trillion market valuation, bolstered by a 3% rise in its stock.
The day closed with the Dow Jones Industrial Average up by 99.13 points, the S&P 500 gaining 8.66 points, and the Nasdaq Composite rising by 113.34 points. As investors look forward to upcoming reports from major players like Meta Platforms, Microsoft, and Alphabet, market anticipation remains high.
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