NEW YORK: Wall Street stocks mostly advanced early Thursday after the US central bank made its first rate cut of 2025 and signaled that more reductions are likely on the way.
Tech shares also jumped, with Intel surging more than 25 percent after US chip giant Nvidia said it would invest $5 billion in Intel in a deal that would see the companies develop custom data center and PC products.
Around five minutes into trading, the Dow Jones Industrial Average slipped 0.1 percent to 45,989.75, while the broad-based S&P 500 increased 0.5 percent to 6,630.53.
The tech-heavy Nasdaq Composite Index rose 0.9 percent to 22,455.11.
On Wednesday the Federal Reserve made a quarter-point rate cut – in line with market expectations – as it flagged risks to the US employment market.
Wall St mixed as markets await Fed’s rate decision
Fed officials also hinted at more cuts to come this year, as they walk a tightrope balancing inflation and labor market risks – all while facing growing pressure from President Donald Trump to slash rates.
Besides appointing a key economic aide to the Fed’s leadership after an early resignation by an official, Trump has also moved to fire another Fed governor, Lisa Cook, over allegations of mortgage fraud.
The ensuing legal battle could have prevented Cook from attending the latest rate meeting, although a court allowed her to remain in place for now.
“Investors feel that lower interest rates will help support (stocks) and could also help to support economic growth and the job market,” said Sam Stovall of CFRA Research.
He noted that initial jobless claims data were also lower than analysts expected, and did not become a major market mover.
American Dollar Exchange Rate