Fed Lowers Interest Rates, Intel and Nvidia Propel Wall Street to Record Heights

The reduction of interest rates by the U.S. Fed by 0.25 percentage points, along with strong surges in the stock prices of Intel and Nvidia, have driven U.S. stock indices to record levels.

Dow Jones has risen to 46,142 points, S&P 500 to 6,631 points, and Nasdaq to 22,470 points. The increases are modest, with none of these indices rising by even a full percentage point. The Russell index of smaller companies has also soared to record levels as investors believe that smaller firms will perform better in a lower interest rate environment.

Intel surged 23%, Nvidia up after a $5 billion investment

Overall, U.S. stock indices are expected to have a solid profitable week.

Similar results with slight increases were achieved by European stock markets. The London FTSE index strengthened by 0.21% to 9,228 points, while the Frankfurt DAX rose by 1.35% to 23,674 points, and the Paris CAC increased by 0.87% to 7,854 points. However, on most Asian stock exchanges, stock prices fell on Friday, although the Asian MSCI index is still on track for gains this week. The latter is primarily attributed to interest rate cuts by several central banks. Along with the U.S. Fed, interest rates have also been lowered by the Canadian and Norwegian central banks.

Asian markets mixed results

Stock prices in Shanghai, India, South Korea, and Japan fell between 0.1% and 0.9%, while in Hong Kong and Australia, they rose between 0.1% and 0.7%. The Japanese Nikkei and South Korean Kospi indices are still on track for weekly gains, although they slipped from record levels this morning.

In the currency markets, the value of the dollar against a basket of currencies has risen for the second consecutive day. The price of the euro slipped from yesterday’s 1.1805 to 1.1775 dollars. The U.S. currency also strengthened against the Japanese yen, with the dollar exchange rate reaching 147.35 yen, compared to 147.15 yen at the same time yesterday.

Oil prices, on the other hand, have fallen. In the London market, the price of a barrel weakened by 0.19% to 67.30 dollars, while in the U.S. market, a barrel decreased by 0.33% to 63.35 dollars.