After the US Federal Reserve kicked off its easing cycle delivering a super sized rate cut after four years, US semiconductor stocks such as Nvidia rose nearly five per cent, while Advanced Micro Devices gained 3.5 per cent and Broadcom added 3.8 per cent, sending the Philadelphia SE Semiconductor Index up 3.6 per cent on Thursday, September 19.
Wall Street rallied on Thursday with the S&P 500 hitting another intraday record high after the Federal Open Market Committee (FOMC) delivered a half-a-percentage point reduction and estimated more cuts were on the horizon. Rate-sensitive growth stocks that have led much of this year’s rally rose. Microsoft added two per cent, Tesla gained 4.2 per cent and Apple advanced 2.6 per cent.
Wall Street today: Chip stocks rally after Fed’s 50 bps rate cut
Jerome Powell-led FOMC forecast rates to fall by another 50 basis points (bps) by year-end and unveiled macroeconomic projections that analysts say reflect a goldilocks scenario, where growth is steady and inflation and unemployment stay low.