Stocks on Wall Street rose on Thursday as relieved investors continued their record gains, cheering the Federal Reserve’s signal that it would slow, but not slow, interest rate cuts.
The S&P 500 (^GSPC) rose 0.5% to above 5,250. The Dow Jones Industrial Average (^DJI) rose about 300 points, or 0.5%, to near 40,000 points, and the tech-heavy Nasdaq Composite Index (^IXIC) rose 0.6%.
Stock indexes closed at record highs on Wednesday after the Federal Reserve eased investor concerns that future borrowing cost cuts would not be as large as expected. Policymakers stuck to their outlook for three rate cuts in 2024, despite volatile inflation data that could lead to a reduction in easing.
A sea of green has spread across stock markets around the world following the “dot plot” forecast and Chairman Jerome Powell’s lack of vigilance over the Fed’s inflation target. Gold (GC=F) soared to a record above $2,200 per ounce.
With six weeks until the next Fed policy meeting in May, other factors in stock prices are likely to be the focus. While expectations for the growth of AI are providing a tailwind for tech companies, there were also signs that the recovery in market confidence is widening.
read more: What the Fed’s interest rate decisions mean for your money
Elsewhere, the Swiss National Bank cut interest rates on Thursday, usurping the march to the Fed. The unexpected move marked the first time a central bank had withdrawn and was seen as increasing confidence in major economies that tightening had peaked.
On the corporate side, investors were keeping an eye on Reddit’s (RDDT) debut on the New York Stock Exchange on Thursday. The social media platform’s IPO price was $34 per share, giving it a valuation of $6.4 billion.
In a big move, Micron (MU) shares rose about 15% after the memory chip maker forecast strong sales for the current quarter on the back of demand for AI hardware.
Apple (AAPL) stock fell about 3% after the iPhone maker was hit with an antitrust lawsuit from the Department of Justice.
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Reddit stock has been shown to open up to 35% higher than its IPO price
Reddit stock is indicated to open between $42 and $46 per share, 35% higher than the social media company’s IPO price of $34 per share.
Indicator ranges help investors know where a stock is likely to open. These numbers may change by the moment of listing.
Reddit trades on the New York Stock Exchange under the ticker symbol RDDT.
Reddit’s public debut seen as a litmus test for the IPO market
Investors are eyeing Reddit’s IPO after the social media platform priced its initial public offering at $34 per share, valuing the company at about $6.4 billion.
The company’s listing on the New York Stock Exchange on Thursday was highly anticipated, given the lackluster listings over the past two years. Reddit is the first major social media company to go public in five years.
The user-generated discussion-style platform has been around since 2005, but gained recognition during 2021’s meme craze. At the time, retail traders on the subreddit WallStreetBets encouraged short selling of video game retailer GameStop (GME) stock. Theater Chain (AMC), and other heavily shorted stocks.
The IPO is expected to gauge investor appetite for tech-related products amid tight monetary policy.
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Apple stock falls further after Justice Department lawsuit
Apple (AAPL) stock fell nearly 3% after the Department of Justice filed an antitrust lawsuit against the iPhone maker.
The lawsuit accuses Apple of maintaining an illegal smartphone monopoly by blocking competitors’ access to the hardware and software features of its devices.
“We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend it,” Apple’s statement released shortly after the lawsuit was filed said. Ta.
Apple stock falls on anticipated Justice Department antitrust lawsuit
Apple (AAPL) stock fell 1.5% on Thursday amid anticipation of a Justice Department antitrust lawsuit against the iPhone maker.
Markets expect law enforcement authorities to indict Apple for allegedly using its hardware and software to block competitors from accessing iPhone features.
Apple stock has fallen about 5% since the beginning of the year.
Stocks open higher as Fed talk lifts market; Reddit IPO on track
Stocks started higher on Thursday, fueling Wednesday’s market rally after the Federal Reserve again signaled it could cut interest rates later this year.
The S&P 500 (^GSPC) rose 0.5% and remained solid above the 5,200 level. The Dow Jones Industrial Average (^DJI) rose 0.2%, and the tech-heavy Nasdaq 100 (^IXIC) rose 0.9%.
Investors will be paying close attention to Reddit’s IPO on Thursday. The social media platform priced its stock at $34 per share, valuing the company at approximately $6.4 billion.
The platform’s debut on the New York Stock Exchange was highly anticipated, given that listings have been stagnant for the past two years. Reddit is the first major social media company to go public in five years.
