US equity indexes achieved new intraday record highs on Thursday, continuing the upward momentum triggered by the presidential election results and the strong expectation that the Federal Reserve will gradually ease its monetary policy. The Nasdaq Composite surged 1.4% to 19,248.2, while the S&P 500 climbed 0.7% to 5,970.3, and the Dow Jones Industrial Average increased by 0.1% to 43,777.8 during midday trading on Thursday.
This uptrend extended from Wednesday, following the announcement that Donald Trump will take office as the 47th President of the United States. 'Market players are betting a Trump victory and Republican control of the Senate will result in policies benefiting economic growth including tax cuts, investment in domestic energy production, and deregulation,' noted Lindsey Piegza, Chief Economist at Stifel, highlighting the optimism felt within the markets.
All sectors, apart from energy, financials, and industrials, saw advances during Thursday's trading session. Technology, consumer discretionary, and communication services were the frontrunners among the gainers, spurred by anticipation of the Fed's policy decision expected at 2 p.m. ET, along with a press briefing by Jerome Powell.
The CME FedWatch tool indicated a staggering 99% chance of a 25-basis-point interest rate cut as of Thursday afternoon. Previously, the Fed had reduced its target rate by 50 basis points in September, initiating its current easing cycle. 'Today, the focus shifts to monetary policy,' Piegza explained, with the Fed widely expected to proceed with easing measures, albeit at a moderated pace.
The US dollar index dipped 0.7% to 104.37, reflecting shifts in investor sentiment. Moreover, US Treasury yields fell, with the 10-year yield dropping by 7.7 basis points to 4.35%, and the two-year rate dropping 5.6 basis points to 4.21%. In economic news, the US Department of Labor reported an uptick in weekly applications for unemployment insurance, which rose for the first time in four weeks.
The seasonally adjusted figure for initial claims increased by 3,000 to 221,000 for the week ending Saturday, slightly below the expectations of 222,000 from a Bloomberg survey. Last week's figures were revised upward by 2,000 to 218,000. For the week ending October 26, continuing claims saw a rise of 39,000 to reach 1.89 million, marking the highest level since November 2021, contrary to the consensus of 1.87 million as per the Bloomberg poll.
In corporate news, EPAM Systems (EPAM) saw its shares spike nearly 14% intraday, making it the top gainer on the S&P 500, after announcing improved Q3 adjusted earnings and revenue, along with an optimistic outlook for the year. Warner Bros. Discovery (WBD) experienced significant growth with its Max streaming platform, reporting its largest quarterly gain in subscribers during Q3, coupled with an unexpected net income despite a decline in overall revenue from the previous year.
The company's stock climbed 9.8% intraday, positioning it as the top performer on the Nasdaq. Additionally, the Federal Aviation Administration is set to enhance its oversight of Boeing (BA) as the firm gears up for the resumption of 737 MAX production following the recent conclusion of a strike. Shares of Boeing increased by nearly 3% intraday, contributing to its strong showing on the Dow.
In commodities, West Texas Intermediate crude oil rose 1.2% to $72.54 a barrel, while gold prices increased by 1.1% to $2,706.61 an ounce, and silver saw a rise of 1.9% to $31.93 an ounce..