- Wall Street rally continues on Fed rate call.
- Apple slips as sued by US DOJ.
- Reddit soars after floating in New York.
4:20pm: Reddit rockets 48% on debut
Wall Street continued its upward trajectory, buoyed by relief among investors following signals from the Federal Reserve indicating a delay rather than a slowdown in rate cuts.
The S&P 500 and the Dow Jones Industrial Average both reached new highs, with gains of 0.3% and 0.7% respectively to close at 5,242 and 39,781 points.
The Nasdaq also saw a more modest 0.2% increase to finish at 16,482.
Reddit stock ended its first trading day at $50.44, more than 48% higher than its debut.
Freedom Capital Markets chief global strategist Jay Woods said Reddit’s IPO on the heels of AI infrastructure firm Astera Labs’ impressive debut on Wednesday were positive signals for the IPO market.
“For the IPO market, the retail investors have an appetite,” Woods noted. “This is a trend we are going to continue to see.”
2:52pm: Dow Jones remains in record-breaking territory
The Dow Jones held onto gains come Thursday lunchtime, climbing 304 points to 39,817 as positivity around Wednesday’s Federal Reserve rate meeting looked to remain.
Markets had rallied on the back of the Fed meeting, which saw interest rates held at 5.5% and policymakers continue to signal three cuts this year, with analysts noting the news gave much-needed clarity on the central bank’s outlook.
Both the Nasdaq and S&P 500 were also up as a result, though receded slightly from earlier gains to sit 36 and 22 points higher respectively at 16,405 and 5,247.
Reddit’s much-anticipated initial public offering on the New York Stock Exchange looked to live up to the hype too, with the shares rallying 36% to US$46.30 shortly after debuting at US$34.
Commentators had warned that the IPO could set a precedent across the wider market after a downtrodden year if poorly received, with others mulling whether Reddit itself could become a so-called meme stock after hosting users that played an integral part in the 2021 frenzy.
Also enjoying gains was Goldman Sachs, which climbed 4.3% after announcing US$700 million had been raised for a new fund focused on working with outsiders to pick up opportunities in both private and public markets.
Apple’s day went from bad to worse though, with the shares falling over 4.2% into the afternoon after it was hit with an antitrust lawsuit from the US Justice Department.
12:39pm: Markets continue rally
The Dow Jones held strong gains, while the S&P 500 and Nasdaq also remained close to highs, into Thursday afternoon, as markets continued digesting Wednesday’s Fed rate call.
At 39,843, the Dow Jones was up 331 points for the day. The Nasdaq and S&P 500 added 122 and 34 points respectively to remain in record-breaking territory at 16,492 and 5,259.
This follows the Federal Reserve’s decision to hold US interest at 5.5% on Wednesday, with policymakers also sticking to projections for three rate cuts this year.
“Rarely as a ‘no change’ policy meeting produced quite the excitement as last night’s Fed meeting,” IG analyst Chris Beauchamp commented.
“While nodding towards stronger than expected [economic growth this year and rates next], the Fed’s decision to stick to current plans has resulted in yet more record highs.”
XTB’s Kathleen Brooks added that clarity around the prospect of the Fed holding rates higher for longer had been offered.
“Now that fear has been pushed aside, the market rally can continue,” she said.
Among companies, it was Apple Inc (NASDAQ:AAPL, ETR:APC) grabbing headlines, as confirmation of an antitrust lawsuit from the Department of Justice sent shares in the technology giant 3.4% lower.
“No matter how powerful, no matter how prominent, no matter how popular - no company is above the law,” deputy attorney general Lisa Monaco said as the lawsuit, filed in New Jersey, was unveiled.
Elsewhere, Micron Technology Inc (NASDAQ:MU) held gains of over 16% after beating earnings on the back of the artificial intelligence boom.
And finally, hype continued to swirl around Reddit Inc's Thursday initial public offering, with markets looking to gauge sentiment based on where the shares go from a US$34 initial price.
9:38am: Wall Street opens higher
Wall Street opened higher on Thursday, with US stocks benefiting from the string of dovish statements coming out of the Fed and European central banks.
The S&P 500 was up 25 points to 5,250, while the Nasdaq reached 16,510, having lifted 132 points.
The Dow Jones began today's trading session around 179 points higher at 39,691.
It means all three indexes have continued to build on all-time highs, having closed on Wednesday at record peaks.
Amazon opened up 1% higher, but shareholders will be smiling after it benefited from the 72% surge of debuting Astera Labs.
In 2022, the e-commerce giant agreed to a deal with Astera - and as part of that deal it secured warrants to purchase some 1.5 million shares at US$20.34 each.
One year later, this deal was rejigged further to give Amazon the right to buy another 830,000 shares. Amazon currently holds a stake worth US$144 million.
Apple slipped by close to 1% after it was revealed it is reportedly set to be hit with an antitrust lawsuit by the US Department of Justice as early as Thursday, which analysts say will ultimately result in a fine.
8:30am: US stocks to build on Wednesday's record session
Wall Street is set to open higher on Thursday after the three major indexes closed out Wednesday at fresh records, boosted by Dovish comments from the Fed.
The Dow Jones is up around 108 points at 39,942 in premarket trading, while the S&P 500 is positioned to open around 21 points higher at 5,288.
The Nasdaq is set to begin trading 168 points higher at 18,482.
Markets in the US and Europe have continued to experience lifts as central banks begin to indicate plans of interest rate cuts later this year.
Micron Technology is up around 18% in premarket trading after it reported better-than-expected earnings which were helped by the AI boom.
Five Below (NASDAQ:FIVE) (Five Below (NASDAQ:FIVE)), the discount retailer is set to open 12% lower after it missed fourth-quarter earnings guidance and had its share price target downgraded by analysts at Citi.