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S&P Hits Record High on Prospect of Lower Rates

CAT

Stocks rose sharply on Thursday after the Federal Reserve hinted at possible interest rate cuts as soon as next month.

The Dow Jones Industrial Average clicked higher 235.89 points to 26,739.89, to within 1% of its record high, led by Caterpillar and Exxon Mobil.

The S&P 500 leaped 22.93 points to 2,949.30, hitting a record high as the tech and energy sectors outperformed

The NASDAQ Composite soared 71.16 points to 8,058.48

Netflix and Amazon were among the best performers, rising more than 1% each. Facebook, Apple and Alphabet also traded higher.

The Fed said Wednesday it stands ready to battle growing global and domestic economic risks as they took stock of intensifying trade tensions and growing concerns about inflation.

Most Fed policymakers slashed their rate outlook for the rest of the calendar year by approximately half a percentage point in the previous session, while Chairman Jerome Powell said others agree the case for lower rates is building.

Market participants viewed the overall tone from the U.S. central bank as more dovish than expected. Traders are now pricing in a 100% chance of a rate cut next month

Prices for the benchmark 10-year U.S. Treasury gained sharply, causing yields to fade to just below 2% from Wednesday's 2.03%. Treasury prices and yields move in opposite directions.

Oil prices perked $2.19 to $55.95 U.S. a barrel.

Gold prices shone brighter $36.40 to $1,385.20 U.S. an ounce.



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