U.S. stocks moved higher on Thursday, anticipating a return to the Trump rally, as investors assessed the next president’s likely impact on markets and awaited the Federal Reserve’s policy decision.
The Dow Jones Industrial Average (^DJI) hovered near the flatline after a 1,500-point gain that marked the blue chip gauge’s best day since 2022. The S&P 500 (^GSPC) rose about 0.4%, while the tech sector The heavyweight Nasdaq Composite (^IXIC) rose 0.9%, while shares of chip heavyweight Nvidia (NVDA) rose to new highs.
The mood still seems upbeat after Donald Trump’s victory in the presidential election, which sent all three major stock prices to new record highs on Wednesday. His plans for corporate tax cuts and deregulation have fueled optimism about a boost to the economy that will impact stocks.
But some on Wall Street see signs of a relief rally as Trump’s decisive victory also eases concerns about a contested vote. They suggest stock gains could slow as the euphoria fades.
The Fed’s interest rate decision later Thursday — usually a dominant event for markets — takes a back seat amid the fallout from the election.
For starters, investors see a 25 basis point rate cut as an almost certain certainty at the end of the policymakers’ two-day meeting. Instead, the focus is on what Chairman Jerome Powell might reveal about the future policy path, especially as Trump’s return could mean rates stay higher for longer.
On the corporate front, shares of Arm Holdings (ARM) fell as the chip designer’s revenue forecast disappointed Wall Street’s hopes for stronger AI-powered growth. In contrast, shares of Qualcomm (QCOM) rose more than 4% after its revenue and profit outlook beat expectations.
Meanwhile, shares of Trump Media & Technology Group (DJT) continued to retreat after the big spike that followed the election results. Shares of the company — home to Trump’s social media platform Truth Social — fell double digits in early trading.
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