U.S. stock markets showed gains with the S&P 500 and Nasdaq reaching record closing highs following the Federal Reserve's decision to cut interest rates. The Dow Jones Industrial Average remained stable at 43,729.34 points, while the S&P 500 increased by 0.74% to 5,973.1 points, and the Nasdaq rose 1.51% to 19,269.46 points.
The Federal Reserve announced a 25 basis point rate cut, lowering the federal funds rate target range to 4.50%-4.75%, aligning with market expectations. Fed Chair Jerome Powell emphasized that inflation expectations remain stable and indicated a gradual shift towards a neutral policy stance. The Fed plans to assess its pace regarding rate changes.
Technology stocks saw significant gains, with the U.S. Tech Seven Giants Index rising 2.06%. Notably, Facebook (META) jumped over 3%, Tesla (TSLA) more than 2%, Google (GOOGL) and Nvidia (NVDA) over 2%, and Apple (AAPL, Financial) over 2%. Amazon (AMZN) and Microsoft (MSFT) also witnessed increases.
Conversely, bank stocks declined, with JPMorgan Chase (JPM) falling over 4%, Goldman Sachs (GS) over 2%, Citigroup (C) more than 1%, Morgan Stanley (MS) over 2%, Bank of America (BAC) more than 1%, and Wells Fargo (WFC) over 3%.
Energy stocks mostly fell, with ExxonMobil (XOM) up slightly by 0.12%, while Chevron (CVX) decreased by 0.58%, ConocoPhillips (COP) over 1%, Schlumberger (SLB) more than 1%, and Occidental Petroleum (OXY) fell by 0.35%.
Chip stocks enjoyed gains with Intel (INTC) rising more than 4%, TSMC (TSM) over 4%, AMD (AMD) more than 3%, Broadcom (AVGO) over 2%, ASML (ASML) over 2%, and Micron Technology (MU) increasing by over 1%.
Chinese stocks listed in the U.S. mostly increased, with the Nasdaq Golden Dragon China Index climbing 3.5% and the Wande China Technology Leaders Index up 4.58%. Among the notable gainers, Xpeng Motors (XPEV) surged over 15%, GDS Holdings (GDS) more than 13%, Futu Holdings (FUTU) over 12%, and Bilibili (BILI) climbing more than 8%. However, iQiyi (IQ) fell over 1%, and Legend Biotech (LEGN) dropped by more than 1%.
In Europe, the UK FTSE 100 Index fell by 0.32%, France's CAC 40 Index rose by 0.76%, and Germany's DAX Index increased by 1.70%.
Crude oil prices rose, with the NYMEX December delivery increasing by 67 cents to $72.36 per barrel, and Brent crude for January delivery rising by 71 cents to $75.63 per barrel.
The U.S. dollar weakened with a decrease of 0.55% in the dollar index, which measures the dollar against six major currencies.
