Stocks rose to record highs on Thursday as investors rotated back into technology stocks now that the Federal Reserve has lowered rates and signaled more cuts are on the way.
The Dow Jones Industrials surged 128.34 points to pause for lunch at 46,146.66
The S&P 500 index plowed forward 42.69 points to 6,643.04.
The tech-heavy NASDAQ resurged 260.05 points to 22,521.73
Intel shares rallied about 26% after Nvidia said it will invest $5 billion in the chipmaker to co-develop data center and PC products. Shares of Nvidia jumped more than 3%.
Shares of several other major tech companies, which tend to outperform in lower interest rate environments, also gained, with Palantir jumping 4%, Micron adding 5% and Google parent Alphabet and Tesla edging higher.
The moves follow a volatile day of trading Wednesday after the Fed, as anticipated, slashed its benchmark rate by a quarter percentage point.
During a news conference following the decision, Fed Chair Jerome Powell put a damper on investor hopes that the central bank would be on a lengthy rate-cutting path this year, as he called the latest cut “risk management.” In fact, policymakers are predicting two more reductions this year, but just one in 2026, while traders had priced in two to three more cuts next year.
Prices for 10-year Treasury lost ground Thursday, pushing yields up to 4.12% from Wednesday’s 4.07%. Treasury prices and yields move in opposite directions.
Oil prices fell 35 cents to $63.70 U.S. a barrel.
Gold prices blundered $45.10 to $3,672.70 U.S. an ounce.
