The markets have finally processed the good news

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The new top
US stocks rallied on Thursday. I S&P 500 again The Dow Jones Industrial Average A new record marked close, while tech-heavy Nasdaq Composite had its fourth best day of the year, fueled by a tech conference. Asia-Pacific markets rose sharply on Friday. Japan’s Nikkei 225 added about 1.7% as the country’s main consumer price index rose by an expected 2.8% year-on-year.

Prices are strong in China and Japan
Asia’s two biggest banks made interest rate decisions on Friday. The People’s Bank of China left its one-year and five-year lending rates unchanged at 3.35% and 3.85% respectively, defying expectations. The Bank of Japan also kept rates steady at “0.25%,” a move that was in line with Reuters poll estimates.

Technology is increasing
After taking a day to digest rate cuts by the US Federal Reserve, investors flocked to technology stocks. on Thursday, Tesla increased by 7.4%, Nvidia 4% came out again an apple increased by 3.7%. Raised by those stocks, i Nasdaq rose 2.5%, its fourth-biggest one-day gain in 2024. Its sharpest rally this year was a 3% rise in Feb. 22.

“Recalibration”
Fed Chairman Jerome Powell’s use of the word “recalibration” seemed to reassure investors that the central bank’s 50 basis point reduction was not that. anxiety. It showed the Fed was not reacting to a slowing economy, but shifting its focus to making sure employment doesn’t continue, writes CNBC’s Jeff Cox.

[PRO] Commodity price movements
Stocks rallied after the Fed cut rates. Lower prices tend to increase demand for goods as well – but it’s not always easy. To predict the performance of assets, such as gold, copper and oil, analysts from Citi and HSBC look at their historical movements after the cut.

“Twenty-four little hours / Brought sun and flowers / Where there was rain,” sang 1950s American star Dinah Washington.

It is also possible that Washington sings about market behavior. Immediately after the Fed announced a jumbo rate cut on Wednesday, stocks hit new highs before crossing into the red by the end of the day.

But twenty-four hours later, after investors assessed that the half-point cut probably did not signal the start of a recession, the major indexes rallied to close at record highs.

I S&P rose 1.7% to end at 5,713.64, the first time the broader index has breached the 5,700 ceiling. Similarly, the Dow closed at 42,025.19, its first above the 42,000 level, after the index rose 1.26%.

I Nasdaqencouraged by the rally with similar words Tesla, Nvidia again an applewas the biggest winner among the major indexes, rising 2.51%, in its fourth best day this year.

And while history shows that September hasn’t been good for stocks, it also tells us that when the S&P hits record highs during the month, the fourth quarter is likely to remain strong. Since 1950, this pattern has played out 20 out of 22 times, Oppenheimer noted.

Indeed, BMO is so bullish on the market that the bank has raised its year-end target S&P to 6,100 — an 8.6% climb from Wednesday’s close — the highest point on Wall Street.

“As with our last target increase in May, we continue to be surprised by the strength of the market’s gains and once again determined that more than an additional correction was warranted,” Chief Investment Officer Brian Belski wrote to clients in a note Thursday.

At the end of Washington’s song, he sings, “What a difference the day makes / And the difference is you.” Powell might feel like Washington is cheering him on.

– CNBC’s Alex Harring, Fred Imbert, Hakyung Kim and Lisa Kailai Han contributed to this story.