Wall Street closes at record highs after US rate cuts and Intel rise
Wall Street closed this Thursday with records in its main indicators.
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Wall Street closed Thursday with record highs in its key indicators, buoyed by the expected interest rate cut in the United States and the sharp rise in Intel (23%) after it was announced that Nvidia will become one of its largest shareholders.
At the bell, the Dow Jones Industrial Average rose 0.27% to 46,142 points; the S&P 500 advanced 0.48% to 6,631 points; and the Nasdaq Index gained 0.94% to 22,470 points. All reached record highs .
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The Russell 2000, an index that groups together smaller companies that typically benefit from the cheaper credit afforded by a low-interest-rate environment, also achieved a milestone for the first time in four years.
The Federal Reserve yesterday lowered rates by a quarter point to a range of 4% to 4.25% , its first rate cut since December 2024, citing economic uncertainty and heightened risks to the job market.
On the corporate front, today's headlines were Nvidia's $5 billion investment in Intel, which will be accompanied by a collaboration on artificial intelligence (AI) chips that they promise will lead to "revolutionary products."
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The Federal Reserve yesterday lowered rates by a quarter point to a range of 4% to 4.25%.
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Intel shares soared, marking their best trading day in nearly 40 years , and boosted the rest of the technology sector, which had the biggest gains today, with notable increases for Nvidia (3.5%) and Micron (5.5%).
" Looking ahead, key questions will be whether productivity gains from AI and automation can offset labor supply shocks and reaccelerate economic growth, and whether fiscal policy in 2026 could provide additional support ," PIMCO economists Tiffany Wilding and Allison Boxer said in a note.
Among the 30 Dow stocks, gains predominated, led by Caterpillar (1.7%), Cisco (1.4%) and Goldman Sachs (1.3%), while the largest losses were for Visa (-2.3%).(See more: The Wallet: Why do some products disappear? )
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