The U.S. stock market is at an all-time high after the Federal Reserve lowered interest rates by 50-basis points.
Both the blue-chip Dow Jones Industrial Average and benchmark S&P 500 closed at record highs on Sept. 19, a day after the American central bank cut interest rates and signalled more reductions are likely over the next year.
The Dow gained 512 points, or 1.2%, and closed above 42,000 for the first time. The S&P 500 increased 1.7% on the day and finished trading above 5,700 for the very first time.
The tech-heavy Nasdaq Composite index, while falling short of a record close, still managed to rise 440 points, or 2.6%, and end the trading session above 20,000.
Technology stocks led the rally as investors flood back into riskier assets now that they have assurances that interest rates are moving lower.
Shares of Nvidia (NVDA) and Apple (AAPL) were among the day’s big winners, gaining 5% and 4%, respectively.
Cryptocurrencies also reversed higher on news of the interest rate cuts, with the price of Bitcoin jumping more than 5% and rising to $63,500 U.S., its highest level in three months.
The Federal Reserve’s benchmark overnight lending rate has been decreased to a range of 4.75% to 5%. The central bank signalled that further rate reductions are likely at its two remaining policy meetings this year.