Markets advanced broadly as investors greeted a surprisingly assertive rate cut from the Federal Reserve. In Europe, the EuroStoxx 50 finished higher by about 2 percent, and Spain’s Ibex rose around 0.8 percent on Thursday as U.S. equity benchmarks reached new all‑time highs. The Dow Jones Industrial Average surpassed 42,000 and carved an intraday high near 42,105, while the S&P 500 climbed above 5,700 for the first time. The Nasdaq gained more than 2 percent, though it did not set a fresh peak. Across asset classes, gains were broad-based in equities. In Asia, the Nikkei added roughly 2.13 percent, the DAX rose about 1.6 percent, and London, Milan, Frankfurt, and Paris posted gains of 0.91 percent, 1.16 percent, 1.55 percent and 2.29 percent respectively. [Source: Market data and analysts]
“Investors are pricing in a scenario of moderate U.S. growth, with inflation continuing to ease and a central bank ready to lower its policy rate toward a normal level again. All of this points to the Fed achieving a soft landing for the economy,” said Juan José Fernández-Figares, an analyst at Link Securities. [Source: Link Securities]
The Fed trimmed the federal funds rate by 0.50 percentage points at this week’s policy meeting. It marks the first reduction in four years as the central bank battles inflation that surged in the wake of the pandemic and the Ukraine conflict, aiming to bring inflation back toward a 2% target.
“The rate cut was the piece missing in the puzzle that could unlock continued growth in technology stocks through year-end and into 2025,” noted Wedbush Securities in a Thursday statement. Tech shares began the session higher on the strength of gains from Nvidia (4.7%), AMD (4.43%), Micron (1.35%), and Alphabet (1.30%). Powell, however, stressed that the Fed does not intend to rush further cuts and will calibrate the pace of any future reductions with care. [Source: Wedbush Securities]
Indicadores macroeconómicos
Respecto a las materias primas, Brent crude rose 1.72% to close Europe at 74.95 dollars per barrel, while West Texas Intermediate (WTI) reached 72.30 dollars, up 1.96%. In the debt market, the Spanish 10-year yield finished near 2.99%, and the premium over Germany stood at about 79.5 basis points. [Source: Market data]
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Respecto a las divisas, the euro traded around 1.1152 dollars per euro, while gold, after touching a recent high near 2,600 dollars following the Fed decision, was trading near 2,590 dollars. Bitcoin jumped more than 5 percent, trading around 63,000 dollars as appetite for risk returned. [Source: Market data]
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