Traders work on the floor of the New York Stock Exchange during the morning trading on Nov. 7, 2024.
Michael M. Santiago | Getty Images
Stocks rose slightly Thursday, hitting record highs, after a huge market rally following Donald Trump’s decisive victory in the presidential election. Traders are also awaiting the Federal Reserve interest rate decision Thursday afternoon.
The S&P 500 gained 0.6%. The Nasdaq Composite advanced 1.2%. The Dow Jones Industrial Average was little changed. The three major averages hit intraday record highs in morning trading.
Trump’s triumph in the race for the White House spurred a surge in stocks Wednesday that sent the blue-chip Dow soaring by more than 1,500 points. The S&P 500 jumped 2.53% for its best post-election day in history.
“The results are in and the financial markets can breathe a little easier without concern over a prolonged election process,” said Scott Helfstein, head of investment strategy at Global X ETFs. “Investors should still be cautious about over- and underreaction to geopolitical news. These events can typically cause large swings in asset prices, but fundamentals will win out over time.”
Financial stocks, which surged on Wednesday, cooled a bit on Thursday. Shares of JPMorgan Chase fell 2% and American Express dipped 1.7%, weighing on the Dow.
Big Tech stocks moved higher, with Apple and Nvidia each gaining more than 1%.
Market participants on Thursday will closely monitor the Federal Reserve’s interest rate decision and Chair Jerome Powell’s subsequent press conference. Fed funds futures are currently pricing in a 100% likelihood that the central bank lowers the borrowing cost at this gathering, according to CME Group’s Fed Watch tool.
“It’s difficult to say whether this easing will continue in the coming months until the dust settles following the US election and the implications for inflation and currencies become clear,” said Richard Flynn, Managing Director at Charles Schwab UK. “But in the short term, we expect that today’s announcement should provide investors with a snippet of clarity in the outlook after a fortnight chock-full of market moving events.”
A rate reduction Thursday would mark a second straight cut after the Fed’s decrease in September, which was its first since 2020.