Traders Take US Fed Interest Rate Cut In Stride As Powell In Focus: Markets Wrap

(Bloomberg) -- Stocks hit fresh all-time highs, Treasuries rebounded and the dollar fell the most since August, with traders awaiting remarks from Jerome Powell after the Federal Reserve cut rates by a quarter percentage point to support the economy.

Equities extended their post-election rally, with the S&P 500 approaching the 6,000 milestone. Treasury 10-year yields declined eight basis points to 4.35%. The Bloomberg Dollar Spot Index fell 0.6%.

US policymakers no longer included a line in their statement about achieving “greater confidence” that inflation is moving sustainably toward 2%, though they noted inflation has “made progress” toward the central bank's goal. The committee modified its language around the job market slightly as well. Powell will hold a press conference at 2:30 p.m. Washington time.

“While the statement was ‘blah,' I do think Powell tries to leave the December meeting more 50/50 and does not commit either way which compares with the current pricing of a 70% chance,” said Peter Boockvar, author of The Boock Report.

The S&P 500 rose 0.6%. The Nasdaq 100 added 1.4%. The Dow Jones Industrial Average was little changed. A Bloomberg gauge of the “Magnificent Seven” megacaps climbed 2.2%. The Russell 2000 of small firms fell 0.2%.

Most major groups advanced, with Apple Inc. and Nvidia Corp. leading gains in megacaps. Lyft Inc. jumped 24% after the ride-hailing company gave a bullish outlook. A closely watched gauge of banks dropped 2% after gaining over 10% in the previous session. JPMorgan Chase & Co. slid 4% after an analyst downgrade.

The pound gained as traders pared bets on further Bank of England easing.

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.6% as of 2:12 p.m. New York time

• The Nasdaq 100 rose 1.4%

• The Dow Jones Industrial Average was little changed

• The MSCI World Index rose 0.8%

• Bloomberg Magnificent 7 Total Return Index rose 2.3%

• The Russell 2000 Index fell 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.6%

• The euro rose 0.5% to $1.0784

• The British pound rose 0.7% to $1.2964

• The Japanese yen rose 0.9% to 153.20 per dollar

Cryptocurrencies

• Bitcoin rose 0.9% to $76,608.73

• Ether rose 7.3% to $2,885.19

Bonds

• The yield on 10-year Treasuries declined eight basis points to 4.35%

• Germany's 10-year yield advanced four basis points to 2.45%

• Britain's 10-year yield declined six basis points to 4.50%

Commodities

• West Texas Intermediate crude rose 1.1% to $72.46 a barrel

• Spot gold rose 1.2% to $2,692.16 an ounce

Get all the live updates on US Fed meeting here.