Stocks in New York conclude their journey at unprecedented heights following the implementation of interest rate reductions.
The major U.S. stock indices closed the day with gains, with the S&P 500 ending at 6,631.96 points, up 0.48 percent. The Nasdaq Composite and Dow Jones Industrial Average followed suit, closing at 22,470.73 points (up 0.94 percent) and 46,142.42 points (up 0.27 percent) respectively.
One of the standout performers of the day was Crowdstrike, a leading cybersecurity company. The company's shares rose by almost 13 percent, driven by a strong revenue increase of over 21 percent in the last quarter. This impressive growth has boosted investor confidence in the company's long-term growth potential. Analyst Brian Essex from JPMorgan has a positive outlook on Crowdstrike, acknowledging the company's dominance in the market.
Crowdstrike's success can be attributed to its ability to unify security processes, offering operational simplicity on a large scale. The company continues to displace established providers, solidifying its position as a key player in the cybersecurity industry.
Elsewhere in the tech sector, Intel's shares soared by almost 23 percent, leading the Nasdaq 100. This surge came after the announcement of a $5 billion (€4.22 billion) investment from Nvidia, forming a strategic partnership between the two tech giants. Nvidia shares also rose among the best performers in the Dow, increasing by 3.5 percent.
However, AMD shares came under slight pressure and lost just under one percent.
The labor market remains a crucial factor for investors, according to Index Radar. On Thursday, the weekly initial jobless claims decreased significantly, signaling a positive trend in the employment sector.
The Federal Reserve lowered the key interest rate by 0.25 percentage points as expected. However, the Fed's future interest rate path remains vague, with potential political pressure leading to concerns about higher inflation, as warned by economist Eric Winograd from AllianceBernstein.
The Russell 2000 closed with a gain of 2.5 percent, reflecting a positive overall sentiment in the market.
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