Fed Rate Cut After S&P 500 Record and Bond Drop

Market Activity After the Fed

Wall Street experienced a historic day, leaving concerns about high valuations behind. The S&P 500 index reached record levels in response to optimism about corporate earnings and activity in technology stocks following the Fed's expected second interest rate cut. Meanwhile, a decline was observed in the bond markets.

Technology Stocks on the Rise

Stocks continued to rise following the Federal Reserve's broad interest rate cut. Fed officials announced that they decided to halt the reduction of the asset portfolio on December 1. The S&P 500 index surpassed 6,900, with the technology sector again delivering a remarkable performance.

Nvidia Corp. and other tech giants approached $5 trillion in market value on positive expectations regarding the Blackwell processors that depreciated following President Donald Trump's upcoming talks with Chinese President Xi Jinping. Microsoft Corp., Alphabet Inc., and Meta Platforms Inc. announced their results after the closing bell.

Bond Market and Dollar Performance

The yield on two-year Treasury bonds rose by three basis points to 3.52%. While fluctuations were observed in the dollar market, gold prices experienced an increase.