Global markets jumped the day (Thursday) after the Fed rate cut. The S&P 500 notched its 39th record in 2024. Here are more details.
US markets
The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon.
The blue chip Dow Jones Industrial Average also registered a record closing high, ending the session above 42,000 for the first time.
The Nasdaq jumped 2.5%. Heavyweight stocks that have enjoyed much of this year's stock market rally made fresh gains, with Tesla surging over 7%, and Apple and Meta Platforms each up almost 4%.
The small-cap Russell 2000 index rose 2.1% as lower interest rates boosted prospects of reduced operating costs and greater profits.
Hong Kong markets
Hong Kong stocks rose on Thursday, lifting the city’s benchmark index above the 18,000 point mark for the first time in two months, after the Federal Reserve cut rates by a half-point.
The Hang Seng Index jumped 2 per cent to 18,013.16 at the close, finishing north of 18,000 for the first time since July 15. Thursday’s gain was the steepest since July 31. The Hang Seng Tech Index rallied 3.3 per cent and the Shanghai Composite Index added 0.7 per cent.
Singapore markets
Singapore stocks climbed to their highest level since 2007 as the prospect of lower interest rates lifted the city-state’s real estate investment trusts, and boosted the appeal of the high-yielding market.
The benchmark Straits Times Index closed 1.1% higher on Thursday, taking its year-to-date gains to 12%. Much of the advance was driven by REITs, which are getting a boost from potentially lower rates. Meanwhile, banking shares have performed well thanks to strong dividend expectations and solid loan growth.
The milestone comes after the Federal Reserve cut its interest rates by 50 basis points, offering space for Asian markets to follow suit. Singapore is seen as a major beneficiary given the abundance of interest-rate sensitive REITs in the market.
Australia markets
Australian shares reset a record high for a fourth straight session on Thursday after the first interest rate cut from the US Federal Reserve in more than four years revived hopes of a soft landing in the world’s largest economy.
The S&P/ASX 200 rose as much as 60 points to break above 8200 points for the first time, before paring modestly to close 49.8 points, or 0.6 per cent higher at 8191.9 points.
The gains on the ASX shrugged off modest falls on Wall Street after Fed chairman Jerome Powell surprised the market with an outsized 50 basis point interest rate cut but added it should not be interpreted as the start of an aggressive reduction cycle.
