At 2:08 p.m. ET, the Dow Jones jumped 450.24 points, or 0.98%, to 46,208.14, the S&P 500 rose 7.91 points, or 0.12%, to 6,614.70, while the Nasdaq slipped 57.05 points, or 0.26%, to 22,276.91.
“Cutting rates while inflation is still running ahead of their target suggests that they (the Fed) are concerned with the health of the economy and employment backdrop,” said Todd Basnight, director of equity research at Aureus Asset Management.
“But, given the narrowness of the market year-to-date, it (rate cut) perhaps allows for a bit more broadening of stock market returns.”
Meanwhile, Nvidia fell 3.1%, dragging the Nasdaq, after a report said China’s internet regulator had instructed the country’s biggest tech companies to stop buying all of the AI leader’s chips.
A broader semiconductor index was set to snap a nine-session winning streak, its longest since September 2017. Defensive sectors such as consumer staples and healthcare stocks climbed 1.2% and 0.6%, respectively, and broader gains limited tech-driven declines on the S&P 500. The financials sector bounced back from Tuesday’s losses and rose 1%. American Express advanced 2.7% to hit a record high and was among the biggest gainers on the Dow.
Concerns about the central bank’s independence seem to have eased a little, with economic adviser Stephen Miran sworn in as a Fed Governor on Tuesday and an appeals court rejecting U.S. President Donald Trump’s attempt to sack Governor Lisa Cook.
The three main indexes have gained so far in September, deemed historically bad for U.S. equities. The S&P 500 has shed 1.5% on average in the month since 2000, data compiled by LSEG showed.
New Fortress Energy soared 26.5% after the company reached an agreement to supply liquefied natural gas to the Puerto Rican government.
Workday gained 8%, topping the benchmark index after activist investor Elliott Management said on Tuesday it had built a stake of more than $2 billion in the human resources software provider.
Lyft jumped 13.8% on the news that Alphabet’s Waymo would launch autonomous cab rides in Nashville next year in
collaboration
with the ride-hailing firm. Rival Uber fell 5%, to the bottom of the S&P 500.
Advancing issues outnumbered decliners by a 2.22-to-1 ratio on the NYSE and by a 1.73-to-1 ratio on the Nasdaq.
The S&P 500 posted 14 new 52-week highs and one new low, while the Nasdaq Composite recorded 75 new highs and 26 new lows.
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