The shares closed on Thursday at a record high levels, with the largest share, as the Federal Reserve signaled this week to move on the path of interest rate mitigation, revitalizing investors and increasing the hope of accelerating economic growth.
The S & P 500 closed in the plus of 0.48% to 6,631.96, while Nasdaq Composite rose by 0.94% and ended at 22,470.73. The Dow Jones Industrial Average ended in 124 points plus, ie 0.27%, to 46,142.42. Each of the main American indices recorded a new record of all time after a lukewarm reaction after reducing the Fed interest rates on Wednesday afternoon. S & P 500 ended the day below Wednesday.
The Russell 2000 small shares index increased by 2.4% and reached a daily record. The reference index has the last time reached the record height in November 2021. The companies with lower capitalization usually benefit from lower interest rates because they often rely on external financing for their business and growth compared to larger companies rich in cash. In addition, they are more associated with the economic cycle of shares of large technological companies that follow the trend of artificial intelligence.
Russell 2000 Performance in the last five years.
However, shares of some large technological companies were also part of growth on Thursday. Intel shares increased by 22.8% after Nvidia stated that he would invest $ 5 billion in the chips for the shared development of chips for data centers and computers. The shares of Nvidia jumped 3.5%, reports SEEbiz.
Gains follow after unstable trading on Wednesday after the Fed, as expected, lowered its reference interest rate for the quarter point. The Central Bank provided for two more increases this year, encouraging investors who hoped that the Fed would continue to easily through interest rates. Traders have neglected the statement of President Jerome Powella that the reduction of the part of “risk management” was and assumed that the FED focuses more on the revival of economic growth and less care about inflation.
