(Bloomberg) — Wall Street traders betting the Federal Reserve will be able to engineer a soft landing spurred a rally in riskier corners of the market, with stocks hitting all-time highs.
Most Read from Bloomberg
Almost every major group in the S&P 500 gained, with the benchmark up 1.9% and poised for its 39th record in 2024. The gauge extended this year’s surge to 20%. The Nasdaq 100 climbed 3% and the Russell 2000 of small caps rose for a seventh straight session. Bitcoin jumped 5.6%. Treasuries were mixed, with shorter-maturities outperforming longer ones. The dollar fell.
Subscribe to the Bloomberg Daybreak podcast on Apple, Spotify or anywhere you listen.
The Fed’s bold start to cutting interest rates and its determination not to fall behind the curve re-ignited hopes the central bank will be able to avoid a recession. Data Thursday showing a slide in jobless claims to the lowest since May signaled the labor market remains healthy despite a slowdown in hiring.
“Despite some volatility after the Fed’s rate cut, the S&P 500’s bullish trend remains intact,” said Fawad Razaqzada at City Index and Forex.com. “The Fed’s decision to deliver a 50-basis point rate cut was largely welcomed by investors. The move was seen as a bold but necessary step to ease economic concerns without sending panic signals reminiscent of the 2008 financial crisis.”
The S&P 500 topped 5,700. Wall Street’s favorite volatility gauge — the VIX — sank to around…
