The Dow Jones Industrial Average surged and the S&P 500 headed for a record close on Wednesday after the Federal Reserve decided to cut interest rates once again this year as traders bet more easing was ahead next year.
The 30-stock Dow rumbled 457.98 points, or 1.1%, to end the session at 48,057.87.
The much-broader index added 46.29 points to 6,886.80.
The NASDAQ changed direction and gained 77.67 points to 23,634.16.
The Fed approved another quarter percentage point cut at the conclusion of its two-day policy meeting. The cut, which marks its third in a row, brings the federal funds rate to a range of 3.50%-3.75%.
On the flip side, the Fed forecasts only one rate cut next year, but traders bet they would go further.
AeroVironment slid $36.54, or 12%, to $255.02. on the back of a fiscal-second-quarter earnings miss. AeroVironment earned 44 cents per share, well below an LSEG estimate of 78 cents per share.
GameStop fell $1.06, or 4.8%, to $22.12, after the company posted its third-quarter results. GameStop earned an adjusted 24 cents per share on revenue of $821 million. Revenue was lighter than one analyst expecting north of $900 million.
Prices for the 10-year Treasury were up slightly, lowering yields to 4.15% from Tuesday’s 4.18%. Treasury prices and yields move in opposite directions.
Oil prices jumped 69 cents to $58.94.
Gold prices advanced $26.30 to $4,262.50.
