The S&P 500 soared 1.7% on Thursday, Sept. 19, notching a record closing high a day after the Fed opted for an aggressive interest-rate cut.

Before Wednesday’s cut, US rates had been at their highest since 2001 as the Fed sought to bring down inflation from the biggest surge in a generation. But with consumer price inflation now at 2.5 per cent, close to the Fed’s 2 per cent target, the central bank has signalled more reductions to come.

The S&P 500 index achieved intra-day record highs after the Federal Reserve slashed interest rates by 50 basis points and signaled further cuts. Major stocks such as Tesla, Apple, and Meta Platforms saw significant gains.

Good news for those building up their 401(k)s: the Dow Jones Industrial Average and S&P 500 closed at record highs after the Fed's rate cuts.

The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon. The blue chip Dow Jones Industrial Average also registered a record closing high,

The Federal Reserve on Wednesday cut interest rates with U.S. stocks trading near a record high, leaving investors searching for historical clues to the path ahead for markets. The S&P 500 briefly traded above its record close from July 16 after the Fed delivered a rate cut of 50 basis points before erasing its gain to end 0.