NEW YORK - US stocks advanced on Thursday, after the Federal Reserve resumed cutting interest rates and flagged additional reductions ahead, while Nvidia's plan to invest in Intel lifted sentiment in the technology sector.
The Dow Jones Industrial Average climbed 124.1 points, or 0.27 percent, to 46,142.42. The S&P 500 added 31.61 points, or 0.48 percent, to 6,631.96. The Nasdaq Composite Index increased by 209.4 points, or 0.94 percent, to 22,470.73. Each of the major indexes notched new all-time intraday highs, extending momentum from Wednesday's volatile post-Fed session.
Seven of the 11 primary S&P 500 sectors finished higher, led by technology and industrials, up 1.36 percent and 1.06 percent, respectively. Consumer staples and consumer discretionary lagged, falling 1.03 percent and 0.51 percent, respectively.
The Russell 2000 small-cap index surged 2.4 percent to an intraday record, the first since November 2021. Smaller companies are seen as key beneficiaries of falling borrowing costs, given their greater reliance on external financing compared with larger, cash-rich firms.
Intel shares surged 22.77 percent after Nvidia said it would invest 5 billion U.S. dollars in the struggling chipmaker to jointly develop data center and PC processors. Nvidia gained 3.5 percent, helping to fuel a rally in major tech names.
The gains came a day after a volatile session in which the Fed delivered a widely expected quarter-point cut to its benchmark rate. Policymakers projected two more reductions this year, reinforcing bets on a sustained easing cycle. Traders shrugged off Fed Chair Jerome Powell's description of the move as "risk management" and interpreted the decision as a pivot toward supporting growth over curbing inflation.
"The fact that they revised growth and inflation forecasts higher and unemployment lower suggests that they think swift, sharp action over coming months will deliver real results for the economy," said James Knightley, Chief International Economist at ING. "We look for 25bp cuts in October and December with additional cuts in January and March, at which point we think the Fed will take stock of the situation."
