Wall Street Hits Record Highs Amid Fed Rate Cut and Strategic Investments

Wall Street's main indexes achieved intraday record highs following a Federal Reserve decision to lower interest rates by a quarter-point. The move sparked significant market activity, particularly in the technology sector, where Intel's shares surged by 23.1% due to Nvidia's commitment to invest $5 billion in the struggling chipmaker.

This decision by Nvidia precipitated a broader lift in semiconductor stocks, pushing the index to a record high and consequently buoying the Nasdaq and the S&P 500 technology sector, which rose by 1.3%. Despite these gains, the energy and consumer staples sectors experienced declines, with drops of 0.62% and 0.79%, respectively.

On Wednesday, Fed Chair Jerome Powell underscored the importance of addressing the softening jobs market, signaling the potential for future rate cuts. In response, investors are increasingly pricing in further cuts, with expectations of approximately 44.4 basis points by 2025, which is expected to continue fueling Wall Street's momentum.