A Microsoft-led rally in technology shares pushed U.S. stock indexes higher on Thursday, a day after the Federal Reserve cut interest rates as expected and left the door open for further monetary intervention.
Shares of the software giant rose 2.2% after the company unveiled a $40 billion stock buyback plan, boosting the S&P 500 benchmark index and driving the broader technology sector up 0.8%.
The S&P 500 was about 10 points shy of its record high of 3,027.98, as markets also turned optimistic about low-level trade talks between the United States and China.
On Wednesday, the Fed announced a quarter percentage point cut in interest rates for the second time this year and said future reductions would be “largely data-dependent”. Traders still see a 45% chance for another 25 basis point rate cut in October, according to CME Group’s FedWatch tool.
At 11:40 a.m. ET, the Dow Jones Industrial Average was up 118.31 points, or 0.44%, at 27,265.39, the S&P 500 was up 14.64 points, or 0.49%, at 3,021.37. The Nasdaq Composite was up 55.21 points, or 0.68%, at 8,232.60.
Source : Reuters