AMERICA The Federal Reserve cut interest rates by the most in 16 years on Thursday, which caused major US stock markets to open with strong gains. Investors were very excited about the move, which was meant to boost the economy.
At 9:51 a.m. EDT (13:51 GMT), The Dow Jones Industrial Average went up by 362 points, or 0.87 percent, to 41,864. It went up 70 points, or 1.25%, to 5,697 on the S&P 500 and stayed there. The Nasdaq Composite, on the other hand, rose 340 points, or 1.93%, to 17,913.
US stock markets The Federal Reserve cut its interest rate by 50 basis points on Wednesday, putting it in a band of 4.75% to 5.00%. The Fed has not eased policy this much since the COVID-19 pandemic started, and this rate cut is a big deal. Emergency cuts during the pandemic were the last time the Fed cut this big. The last time was during the global financial crisis in 2008.
The VIX volatility index, which is also known as the “fear index,” went down by 8.4% and ended the day at 16.69. The rate of interest on a 10-year US Treasury note went up by 1.6% to 3.750%.
The US dollar also got stronger. The dollar index went up by 0.44% to 101.03. The euro, on the other hand, stayed the same and traded at $1.
Precious metals did well in the commodity markets. The price of gold went up by 0.7% to $2,577 an ounce, and the cost of silver went up by 2.5% to $30.82 an ounce.
The price of oil went up a little. The cost of global standard Brent crude went up by 0.7% to $74.14 per barrel, and the cost of US benchmark West Texas Intermediate went up by 0.4% to $70.44 per barrel.
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