Stocks on Wall Street rose to take advantage of a record rally on Thursday as relieved investors continued to celebrate the Signals from the Federal Reserve will delay, but not slow down, rate cuts.
The S&P 500 (^GSPC) rose 0.5%, exceeding 5,250. The Dow Jones Industrial Average (^DJI) gained about 300 points or 0.5% to approach the 40,000 mark, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.6%.
Stock indexes closed at record highs on Wednesday after the Federal Reserve allayed investor concerns that upcoming cuts to borrowing costs would be shallower than expected. Political leaders stuck to your perspective three rate cuts in 2024, despite difficult inflation data that could have led to a reduction in easing.
With six weeks to go until the Fed's next policy meeting in May, they are now likely to focus on other drivers of stocks. While AI growth hopes have given a boost to tech, there were signs of amplifying the market's relief rally.
Elsewhere, the Swiss National Bank moved ahead of the Federal Reserve by lowering interest rates Thursday. The surprise move made it the first central bank to back down and was seen as a boost to confidence that tightening has peaked in major economies.
On the business front, investors were closely following Reddit (RDDT) is debut on the New York Stock Exchange on Thursday. The social media platform priced its initial public offering at $34 per share for a valuation of $6.4 billion.
Reddit Actions (RDDT) opened on the New York Stock Exchange at $47 per share.
The stock quickly gained even more, settling at around $55 per share in less than 10 minutes of trading. It has now gained approximately 60% from its IPO price of $34.
Industrials and consumer discretionary lead S&P 500 rally
The S&P 500 (^GSPC) is up approximately 0.6% in afternoon trading and once again it is the non-tech sectors that are leading the charge.
As occurred after yesterday's Federal Reserve press conference in which the central bank improved its economic growth prospects for this year, the industrial sector (XLII) and Discretionary Consumption (xly) lead the eleven sectors of the day.
Source: Yahoo Finance
Dow rises 300 points and reaches a new high
The Dow Jones Industrial Average (^dji) rose more than 300 points and hit new highs on Thursday.
Goldman Sachs (G.S.), Intel (INTC) and Home Depot (High Definition) led the gains. The rise in the major averages comes despite a 3% drop in Apple (AAPL) actions following a Justice Department lawsuit against the iPhone maker.
Reddit Shares Indicated to Open Up to 52% Higher Than IPO Price
Reddit stock is indicated to open between $50 and $52 per share, up to 52% higher than the social media company's IPO price. $34 per share.
The platform's debut on the New York Stock Exchange on Thursday is expected to give markets an indication of what other companies waiting on the IPO sidelines can expect after a two-year pause in public offerings.
Bank Stocks Rise, Goldman Sachs Hits 52-Week High
Bank stocks rose on Thursday after the Federal Reserve kept rates unchanged on Wednesday, but kept hinting at rate cuts later this year.
Goldman Sachs (G.S.) rose over 3.5% to hit a 52-week high during the session. The stock was around $410 per share.
The S&P 500 financial sector ETF (Four. Five) has risen 11.6% since the beginning of the year, as investors have flocked to banking stocks in anticipation of an easing of monetary policy this year.
Reddit Shares Indicated to Open Up to 35% Higher Than IPO Price
Reddit shares are indicated to open between $42 and $46 per share, up to 35% higher than the social media company's price. IPO price of $34 each.
Indication ranges give investors an idea of โโwhere stocks might open. Those figures could change up to the time of listing.
Reddit will trade under the symbol RDDT on the New York Stock Exchange.
Reddit's public debut seen as litmus test for IPO market
Investors are closely watching Reddit's initial public offering after the social media platform priced its initial public offering at $34 per share, valuing the company at approximately $6.4 billion.
The company's debut on the New York Stock Exchange on Thursday has been highly anticipated, given the pause in public listings over the past two years. Reddit is the first major social media company to go public in five years.
The user-generated discussion platform has been around since 2005, but gained greater recognition during the meme frenzy in 2021. At the time, retail traders on the WallStreetBets subreddit encouraged a short squeeze in shares of video game retailer GameStop (GME), cinema chain (AMC), and other heavily shorted stocks.
The IPO is expected to gauge investor appetite for technology-related offerings at a time when monetary policy is strict.
The lawsuit accuses Apple of maintaining an illegal monopoly on smartphones blocking competitors' access to the hardware and software functions of their devices.
An Apple statement released shortly after the lawsuit was filed said, in part: "We believe this lawsuit is factually and legally wrong, and we will vigorously defend against it."
Apple Stock Falls on Expected Justice Department Antitrust Lawsuit
Apple (AAPL) shares sank 1.5% Thursday amid an expected Justice Department antitrust lawsuit against the iPhone maker.
The market anticipates that law enforcement officials will report Apple for allegedly using its hardware and software to prevent competitors from accessing its iPhone features.
Apple stock is down about 5% so far this year.
Stocks Open Higher as Fed Rumors Boost Markets and Reddit IPO on Cover
Stocks opened higher on Thursday, adding to Wednesday's market gains after the Federal Reserve hinted once again that it will likely cut interest rates at some point this year.
The S&P 500 (^GSPC) rose 0.5%, trading solidly above the 5,200 level. The Dow Jones Industrial Average (^DJI) rose 0.2%, while the tech-heavy Nasdaq 100 (^IXIC) rose 0.9%.
Investors will be paying close attention to Reddit's initial public offering on Thursday. The social media platform priced its shares at $34 each, valuing the company at about $6.4 billion.
The platform's debut on the New York Stock Exchange has been highly anticipated, given the pause in public listings over the past two years. Reddit is the first major social media company to go public in five years.
