On Thursday, Wall Street witnessed a momentous occasion as the Dow Jones Industrial Average approached the historic 40,000 mark, marking a significant milestone in its 128-year history. This surge to new highs came on the heels of a bullish market fueled by the Federal Reserve’s decision the previous day to maintain interest rates unchanged and reaffirm its projection for three rate cuts this year.
The optimism from Wednesday’s Fed announcement carried over into Thursday’s trading session, propelling all three major indexes to reach new record highs once again. The Dow surged by 269 points, or 0.7%, reaching an unprecedented level of 39,781.5. Similarly, the S&P 500 rose by 0.3% to hit an all-time high of 5,241.53, while the Nasdaq experienced a 0.2% increase, breaking its previous record to reach 16,401.84.
This bullish sentiment was not limited to the US market alone; it extended globally, with European and Asian stocks also witnessing gains. Switzerland’s central bank made history by becoming the first from a wealthy, advanced economy to cut its interest rate, while the Bank of England opted to maintain its rate unchanged.
Amidst these market movements, investors in the US are increasingly anticipating a high likelihood of rate cuts starting in June, reflecting growing expectations within the market.
Adding to the day’s excitement was the highly anticipated trading debut of Reddit, the popular online forum, on the New York Stock Exchange under the ticker symbol ‘RDDT.’ Reddit priced its initial public offering at $34 a share, valuing the company at approximately $6.5 billion. The stock surged to $47 during Thursday’s trading session and peaked at $57.80, representing a remarkable 70% increase from the IPO price. Ultimately, RDDT closed the day up more than 48%, further contributing to the upbeat mood on Wall Street.