U.S. Stock Market Reaches Record Highs Amid Federal Reserve Focus

The S&P 500 hit new record highs on Thursday, following a significant gain the previous day—the largest in two years—while investors await the Federal Reserve’s upcoming decision on interest rates. By early afternoon, the S&P 500 rose by 0.7%, nearing its intraday peak of 5,972.9. The Dow Jones Industrial Average edged up 0.1%, and the NASDAQ Composite climbed 1.4%, with both also reaching record levels.

Federal Reserve Meeting Holds Market’s Attention

Investors are keenly anticipating the Fed’s announcement later today. Markets are largely expecting a 0.25% rate cut, following a previous reduction in September when the Fed cut rates by a more aggressive 0.5% in response to declining inflation. There is uncertainty around future cuts, and investors are particularly eager to hear Fed Chair Jerome Powell’s comments on upcoming policy moves. While some forecasts include another rate cut in December, these expectations have cooled slightly since the recent election results.

Company Earnings: Moderna, Warner Bros., and Lyft Impress

Moderna (NASDAQ:MRNA) initially rose after announcing a surprising Q3 profit driven by COVID-19 vaccine sales, though the company forecasted lower sales for 2024. Warner Bros. Discovery (NASDAQ:WBD) saw a more than 10% jump despite missing revenue targets, benefiting from unexpected profitability. Lyft (NASDAQ:LYFT) surged 25% after exceeding sales estimates, offering optimistic guidance, and announcing a self-driving car partnership. Truist Securities highlighted that Lyft’s focus on customer experience and product innovation has started to drive growth in active riders.

Chipmakers Qualcomm and Arm Holdings See Strong Performance

Qualcomm (NASDAQ:QCOM) exceeded analyst expectations with its fourth-quarter earnings and announced a $15 billion stock buyback, spiking over 5%. The company’s shift from wireless communication to advanced computing technology for efficient edge applications has impressed analysts, with UBS raising its target price to $190. Similarly, Arm Holdings ADR (NASDAQ:ARM) reported better-than-expected quarterly results, boosting its shares by more than 4%.

Sources:

“US stock futures edge higher; Federal Reserve meeting in focus” – Investing.com