Markets Wrap S&P 500 Hits All-Time High on Soft-Landing Hopes
Wall Street traders betting the Federal Reserve will be able to engineer a soft landing spurred a rally in riskier corners of the market, with stocks hitting all-time highs.
The S&P 500 topped 5,700. Wall Street’s favorite volatility gauge — the VIX — tumbled below 17.
Tweet on stock market as fed announced rate cut
S&P 500 Hits All-Time High on Soft-Landing Hopes:
Treasuries decline alongside the US dollar while Bitcoin jumps.#fedrates #markets #btc pic.twitter.com/OiPxxMR98R— The_Journalbiz (@the_journalbiz) September 19, 2024
Bloomberg chart, S&P 500
Almost every major group in the S&P 500 gained, with the benchmark up 1.7% and poised for its 39th record in 2024. The gauge extended this year’s surge to about 20%. The Nasdaq 100 climbed 2.9% and the Russell 2000 of small caps rose for a seventh straight session. Bitcoin jumped 5.7%. Bonds and the dollar fell.
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Treasuries decline alongside US dollar while Bitcoin jumps
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Jobless claims fall to lowest since May in solid labor market
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The yield on 10-year Treasuries advanced four basis points to 3.75%.
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 avoid a recession. Data Thursday showing a slide in jobless claims to the lowest since May signaled the labor market remains healthy despite a slowdown in hiring.
“Despite some volatility after the Fed’s rate cut, the S&P 500’s bullish trend remains intact,” said Fawad Razaqzada at City Index and Forex.com.
