Dow jumps to another all-time high day after Fed delivers big rate cut

Market Overview - Wall Street experienced a rally with the Dow and S&P 500 reaching intraday record highs following the Federal Reserve's half-percentage point rate cut and forecast of more cuts ahead [1][3] - The Dow Jones Industrial Average increased by 394 points (1%) to 41,897, with an intraday peak of 42,105.01 [1] Sector Performance - Rate-sensitive growth stocks saw significant gains, with Microsoft up 2%, Tesla up 4.2%, and Apple up 2.6% [3] - Semiconductor stocks performed well, with Nvidia rising 4.7%, Advanced Micro Devices gaining 3.5%, and Broadcom increasing by 3.8%, contributing to a 3.6% rise in the Philadelphia SE Semiconductor Index [3] - The Russell 2000 index rose by 1.7%, benefiting from a lower interest environment that could reduce operating costs for credit-dependent companies [3] Economic Indicators - The Federal Reserve projected an additional 50 basis points rate cut by year-end, indicating a favorable economic scenario with steady growth, low inflation, and low unemployment [3][5] - Jobless claims for the week ending September 14 were reported at 219,000, lower than the expected 230,000, supporting the notion of a soft landing for the economy [3][5] Market Sentiment - Traders are anticipating a 63.1% chance of a 25 basis points rate cut at the November meeting, according to CME Group's FedWatch tool [5] - Bank of America Global Research has revised its forecast to a total of 75 basis points in rate cuts by the end of this year, up from an earlier estimate of 50 basis points [5] Historical Context - Historically, the S&P 500 has averaged a 14% gain in the six months following the first reduction of a rate-cutting cycle, based on data from Evercore ISI [7] - September has typically been a challenging month for US equities, with the S&P 500 averaging a loss of 1.2% since 1928 [7] Individual Company Movements - Bank of America and Wells Fargo each advanced over 1% after lowering their prime rates, while Citigroup rose by 1.9%, contributing to a 0.8% increase in the broader banks index [7] - Fertility benefits management firm Progyny saw a significant decline of 33% after a major client opted to terminate its services agreement [8]