Fed’s Rate Cut Sends Stocks to a Record

Stocks soared to all-time highs on Thursday as Wall Street bet that the Federal Reserve will be able to help the US avoid a recession as it enters a new easing cycle. The S&P 500 climbed 1.7%, notching its 39th record in 2024 and extending this year’s surge to about 20%. Tech led the advance. The Nasdaq 100 added 2.6% and the Russell 2000 of small caps rose for a seventh straight session. Bitcoin jumped 5%. The Fed’s bold start to cutting interest rates and its determination not to fall behind the curve re-ignited hopes the central bank will be able to stick a soft landing. Data on Thursday showed a slide in jobless claims to the lowest since May, signaling the labor market remains healthy despite a slowdown in hiring. The fundamentals of the US economy are healthy and investors’ new focus is on how fast the Fed will slash rates. Here’s your markets wrap.
--Margaret Sutherlin

In a welcome sign for homebuyers, mortgage rates continued their decline, hitting the lowest level since early February 2023. The average for a 30-year, fixed loan was 6.09%, down from 6.2% last week. Brokers and housing experts are optimistic that as rates continue to fall, buyers and sellers will return to a market that’s been dogged for years by high prices and low turnover and inventory. The spring selling season was the worst in a decade and US existing home sales in August continued the trend, falling to the lowest in nearly a year.