US weekly jobless claims rise moderately
Fed cuts rates by 25 bps
JP Morgan, Goldman weigh on Dow
Indexes Dow flat, SP 500 up 0.74, Nasdaq up 1.5
NEW YORK, Reuters U.S. stocks closed higher on Thursday, after the Federal Reserve announced a cut of 25 basis points bps in interest rates, extending a sharp rally sparked by Donald Trump39;s return as U.S. president.
The Fed cut interest rates by a quarter of a percentage point as policymakers took note of a job market that has generally eased while inflation continues to move toward the U.S. central bank39;s 2 target.
Markets had almost fully priced in a 25basispoint rate cut for the November meeting and will now eye upcoming commentary from the central bank for guidance about the path of monetary policy.
Investor expectations that Trump would lower corporate taxes and loosen regulations sparked a surge in each of the three major indexes in the prior session, with both the Dow Industrials and SP 500 recording their largest oneday percentage jumps in two years.
In an actionpacked week, the Fed didnt add any drama. Cutting by 25 basis points still keeps the federal funds rate restrictive, but not as restrictive as it was, said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin.
Elections have consequences and we could see a marginal improvement in growth relative to their forecasts, but also a marginal increase in inflation relative to their forecasts. That would call for a more…