Stocks surge to unprecedented levels in the U.S., fueled by the Federal Reserve's interest rate reduction and Nvidia's announcement of a strategic partnership with Intel.
The major indices in the US saw mixed results today, with the Dow Jones Industrial Average and S&P 500 edging up by 0.27% and 0.48% respectively, while the tech-heavy Nasdaq experienced a more significant jump of 0.94% in the stock market today.
Meanwhile, the FTSE 250 in the UK is trading slightly lower for the day. This temporary slip is more reflective of investors returning to the flying US stock market, according to Richard Hunter, the head of markets at Interactive Investor. The premier index found the going heavy in opening exchanges.
The FTSE 250's 12.9% gain so far this year is primarily due to overseas demand. However, weaker sterling and growing concerns for the British economy are reflecting on the FTSE 250, with official data showing government borrowing coming in higher than expected last month.
In the US, the Federal Reserve cut US interest rates by 25 basis points on Wednesday, a move that has been under pressure from President Donald Trump to counter inflation concerns, particularly from Jerome Powell, the Fed chair. Markets are forecasting two more rate cuts over the remaining two meetings this year and one more in 2026.
The US stock market record highs on Thursday were celebrated by investors, but the publicly traded company with the largest market share is not explicitly named in the available search results. However, Lockheed Martin is highlighted as a major US dividend stock with substantial contracts and stable revenue, implying significant market standing in this environment.
Neil Wilson, UK investor strategist at Saxo Markets, suggested that the US government's 10% stake in Intel could be a sign of increased consolidation and cooperation in the tech space. This speculation comes after Intel's stock jumped more than 22% following Nvidia's announcement of a $5 billion investment in the struggling US chipmaker.
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Gold prices edged down from record highs, with spot gold down 0.38% for the day on Thursday. However, early trading in London saw gold recover by 0.2%, reaching $3,684.40 per ounce.
Small caps, represented by the Russell 2000, also hit an all-time high, adding to the mixed picture of the global stock market today.
Nvidia's shares closed up 3.5% for the day, making it one of the top performers in the tech sector.
As always, it's crucial for investors to stay informed and make informed decisions based on their individual financial goals and risk tolerance.
