S&P 500 climbs after hitting fresh record high as Fed cuts rates again

The S&P 500 climbed to fresh record highs Thursday, a day after notching its biggest-one day gain in two years as the Federal Reserve delivered a widely expected rate cut.  

At 2:08 p.m. ET (1908 GMT), the S&P 500 index gained 0.7% to remain near record highs seen intraday of 5,972.9.  The Dow Jones Industrial Average rose 19 points, or 0.1%, and theNASDAQ Composite added 1.4%, with latter two indexes also hitting intraday record highs. Federal Reserve rate cut meets expectations 

As many had expected, the Fed cut rates by 25 basis points on Thursday, taking its benchmark rate to a range of 4.5% to 4.75%. The move marked a downshift from the 50 basis point rate cut that kicked off the cutting cycle in September, as incoming economic had mostly surprise to the update.

"Inflation has made progress toward the Committee's 2 percent objective but remains somewhat elevated," the Fed said in its monetary policy statement on Thursday.   Moderna , Warner Bros deliver surprise profit; Lyft surges on upbeat guidance

Moderna (NASDAQ:MRNA ) stock gave up early-day gains to trade 2% lower even as the drugmaker reported a surprise net income in the third quarter and announced changes at its leadership team. The beat on the bottom line was driven by higher-than-expected COVID-19 vaccine sales, but Moderna said it expects lower sales in 2024 compared with last year. 

Warner Bros Discovery (NASDAQ:WBD ) stock rose over 10% after the mass media giant reported a surprise third-quarter profit, but missed revenue estimates as its studio business took a hit from fewer blockbuster releases.

Lyft (NASDAQ:LYFT ) stock soared about 23% after the ride-hailing company posted sales above expectations, upbeat guidance, and unveiled a new partnership for self-driving cars.

Lyft's guidance and strong quarter  "show that management's strategy of improving the customer experience, the cadence of product innovation and pricing is starting to bear fruit, driving active riders & rider frequency growth," Truist Securities said in a note.

Numbers from Block (NYSE:SQ ), Pinterest (NYSE:PINS ) and Rivian Automotive (NASDAQ:RIVN ) due after the close. Qualcomm (NASDAQ:QCOM ) gives up gains, ARM Holdings (LON:ARM ) shines

Qualcomm gave up the bulk the of gains even after its fiscal Q4 results topped analysts estimates and the chipmaker announced a $15B stock buyback program. 

The chipmaker's "story continues to transform from a "wireless communications supplier to one focused on leveraging its compute expertise for edge applications where power/performance is key," UBS said in a note as it lifted its price target on the stock to $190 from $185.

Arm Holdings ADR (NASDAQ:ARM ) also delivered quarterly results that surprised to the upside, sending its shares more than 3% higher. 

(Peter Nuse, Ambar Warrick contributed to this article.)

Source: Investing.com