Stocks extended their gains on Thursday, reaching record highs and continuing the robust market rally that followed the decisive victory of President-elect Donald Trump.
Investors were also closely watching the Federal Reserve's recent decision to cut interest rates by 25 basis points.
The S&P 500 rose 0.9%, and the Nasdaq Composite advanced 1.6%, while the Dow Jones Industrial Average added 0.2%.
All three major indices touched record highs during the session, building on Wednesday’s post-election surge when the Dow rocketed up by 1,500 points and the S&P 500 posted a 2.53% jump - the largest post-election day rally in its history.
Amid this market upswing, the Federal Reserve delivered its second consecutive rate cut, though it opted for a smaller 0.25 percentage point move compared to September’s half-point cut.
During his press conference, Fed Chair Jerome Powell indicated confidence in the economic outlook, stating that the central bank was "feeling good" about current conditions.
Despite this optimism, recent weeks have clouded the prospects for future cuts, as inflation concerns rise over Trump’s proposed tax cuts and government spending plans.
The second Trump administration has sparked optimism for risk assets like stocks, with expectations of pro-growth policies. However, the potential for large government deficits and higher tariffs has raised questions about inflation and its impact on the economy.
Leading the market on Thursday were major tech stocks, as Apple and Nvidia gained 2% and 1.7%, respectively, while Meta Platforms surged more than 3%.
Financial stocks, which surged sharply on Wednesday, took a breather, with JPMorgan Chase falling nearly 4% and American Express slipping more than 2%, pulling slightly on the Dow.
Meanwhile, the bond markets remained volatile. After spiking in the previous session, Treasury yields eased on Thursday, with the 10-year yield settling at 4.324% and the 2-year yield at 4.212%.