Stock Market today: Wall Street rises after Fed cuts interest rates

NEW YORK (AP) – US stocks are rising on Thursday, as The Federal Reserve cuts interest rates and to ease economic conditions.

The S&P 500 was up 0.9% in late trade, adding more its rise since yesterday next Donald Trump’s presidential victory. The Dow Jones Industrial Average was up 69 points, or 0.2%, with 45 minutes remaining in trading, and the Nasdaq composite was up 1.6%.

The Fed’s announcement that it is easing its interest rate caused little turmoil in the market because the exact size was well anticipated by investors. Stocks were already higher for most of the day and slightly higher after the Fed’s announcement in the afternoon.

The central bank began cutting rates in September and has signaled that further cuts could be made, as it focuses more on savings. job market howling after helping to find inflation is almost below its 2% target.. The most uncertain thing in investors’ minds is how much Trump’s victory may be an upset Fed plans.

Trump is pushing for tariffs and other policies that economists say are it can raise inflationalong with economic growth. Traders have started predicting how much of a rate cut the Fed will bring next year as a result. While lower rates can boost the economy, they can also result in higher fuel prices.

For now, Fed Chairman Jerome Powell said, nothing is changing. “In the near future, the elections will have no effect,” he said.

With any president, Powell said the Fed looks at potential policy changes and simulates how they might affect the economy. And only after looking at the overall effect of all policies where the Fed officials decide how that should form the interest rate policy. This time, Powell said it is not yet clear what the policy changes will be after Trump returns to the White House.

“We don’t think, we don’t imagine and we don’t think,” he said.

On Wall Street, health services company McKesson helped drive the market by jumping 10.7% after reporting stronger profits for the latest quarter than analysts expected.

Lyft recovered 24.1% after the ride-hailing app beat Wall Street’s sales and profit expectations, and Ralph Lauren rose 5.4% after customers in Asia and Europe help it deliver greater profits than expected.

They helped bank stocks, which gave back some of their stellar gains from yesterday. Some “Trump businesses” that were high after the election also lost their juice.

JPMorgan Chase fell 4.4%, a day after banks led the market on expectations that a stronger economy and lighter regulation from Washington could mean stronger profits.

Small US stocks also weighed on the market, with the Russell 2000 index largely unchanged. The day before, it doubled the S&P 500’s gains on those expectations Trump’s priorities are America-first it would mostly benefit smaller, more domestically focused companies.

A very similar stock to the president-elect, Trump Media & Technology Groupdecreased by 21.4%.

In the bond market, the yield on the 10-year Treasury fell to 4.31% from 4.44% on Wednesday. It reversed part of its previous day’s performance, driven by expectations of Trump’s plans high rates, low tax rates and light regulation it could lead to greater economic growth, US government debt and inflation.

A report on Thursday showed US workers increased slightly application for unemployment benefitsalthough that number was what economists expected. A separate preliminary report said that US workers improved their productivity over the summer, which could help put a lid on inflation, but not as much as economists expected.

In stock markets abroad, London’s FTSE 100 fell 0.3% after The Bank of England is down its interest rate is a quarter of a percent.

In Asia, Japan’s Nikkei 225 slipped 0.3% amid concerns about the possibility of renewed trade tensions under the Trump administration.

“I think everybody is going to be concerned about Trump’s tariffs because that’s one of the things in his playbook. So we’ll have to see how things play out in the early stages of the presidency. home this time,” said Neil Newman, head of strategy at Astris Advisory Japan.

Stocks rallied 2% in Hong Kong and 2.6% in Shanghai after the Chinese government reported. exports jumped in October at the highest rate in more than two years.

Trump has promised to slap 60% tariffs on all Chinese goods, raising them further if Beijing moves to invade the self-governing island of Taiwan. That would add up burdens that Beijing faces as it struggles to revive declining growth in the world’s second largest economy.

But the stimulus may be weaker than fear, Zichun Huang of Capital Economics said in a report.

“We expect exports to remain strong in the coming months — any pullback from Trump’s tariffs may not happen until the second half of next year,” Huang said.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.