US stocks end at records, extending rally
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Traders working on the floor of the New York Stock Exchange, in New York City.
PHOTO: AFP
Follow topic:
- Wall Street hit record highs after the Federal Reserve cut interest rates by 25 basis points, signalling possible further cuts in 2025.
- Positive US-China trade negotiation tone, including talks on TikTok, boosted market sentiment despite concerns about elevated US Treasury yields.
- FedEx's increased profits and strong demand for new iPhones drove individual stock gains, contributing to the overall market rally.
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NEW YORK - Wall Street stocks finished at fresh records Sept 19, extending a rally after the Federal Reserve announced its first interest rate cut of 2025.
All three major indices posted records for the second day in a row, with the Dow Jones Industrial Average finishing up 0.4 per cent at 46,315.27.
The broad-based S&P 500 gained 0.5 per cent to 6,664.36, while the tech-rich Nasdaq Composite Index advanced 0.7 per cent to 22,631.48.
“Traders are satisfied” with the Federal Reserve’s decision, said FHN Financial’s Chris Low.
The Fed on Sept 17 lowered interest rates by 25 basis points
But Mr Jack Ablin, of Cresset Capital Management, noted that the rise in US Treasury yields represents a source of concern.
“I’m going to celebrate the equity records but the market is expensive and the 10-year yields is moving higher,” Mr Ablin said. “That’s something we need to pay attention to.”
President Donald Trump on Sept 9 described as “very productive” a call with Chinese President Xi Jinping
Markets have greeted the cordial tone of US-China negotiations, a shift from earlier in the year when both sides were announcing heavy tariffs.
Among individual companies, FedEx climbed 2.4 per cent after reporting higher quarterly profits as pointed to strength in its US business and a lift from cost cuts.
Apple jumped 3.2 per cent as the tech giant’s launch of new iPhones was greeted with long lines at retail outlooks, suggesting strong demand for the devices. AFP
