Karen Friar and Ines Ferré
Updated
Stocks on Wall Street rose to build on a record-setting rally on Thursday as relieved investors continued to celebrate the Federal Reserve's signals it will delay but not slow rate cuts.
The S&P 500 (^GSPC) rose 0.5%, surpassing 5,250. The Dow Jones Industrial Average (^DJI) gained roughly 300 points or 0.5% to creep closer to the 40,000 mark, while the tech-heavy Nasdaq Composite (^IXIC) moved up 0.6%.
The stock indexes closed Wednesday at all-time highs after the Fed put to rest investors' worries that coming cuts to borrowing costs would be less deep than forecast. Policymakers stuck to their outlook for three rate cuts in 2024, despite sticky inflation data that might have led to a scaling-back in easing.
A sea of green for stocks worldwide followed the "dot plot" forecasts and Chair Jerome Powell's lack of alarm over the Fed reaching its inflation goal. Gold (GC=F) jumped to a record above $2,200 an ounce.
With six weeks until the next Fed policy meeting in May, other drivers for stocks are now likely to come into focus. While AI growth hopes have provided a boost to techs, there were signs of broadening in the market's relief rally.
Read more: What the Fed rate decision means for your money
Elsewhere, the Swiss National Bank stole a march on the Fed by lowering interest rates on Thursday. The surprise move made it the first central bank to pull back and was seen as boosting confidence that tightening has peaked in leading economies.
On the corporate front, investors were keeping a close eye on Reddit (RDDT)'s is debut on the NYSE on Thursday. The social media platform priced its IPO at $34 per share for a valuation of $6.4 billion.
Among big movers, Micron (MU) shares jumped roughly 15% after the memory chip maker's strong current-quarter revenue forecast amid demand for its AI hardware.
Apple (AAPL) shares sank roughly 3% after the iPhone maker was hit with an anti-trust lawsuit from the Department of Justice.
Live11 updates
Brian Sozzi
Scenes from the Reddit IPO day road
I have spent half of the day down on the NYSE trading floor working the Reddit IPO (RDDT). Tons of fun being in the middle of the action on a buzzy IPO.
A couple things I picked up on Reddit over the course of a few hours:
The company opted against making a big advertising splash at the NYSE. There was no banner out front of the exchange, no big swag giveaways down on the floor. The message was clear (at least to me): the company gets they need to start making sustainable profits.
Spent some time off camera with Reddit's co-founder and CEO Steve Huffman. He shared he is about to be a first-time father. After continuing this chat, I just didn't get the sense he will be the person that dumps all of his stock anytime soon and leaves investors holding the bag. You can tell his passion for what he helped create is authentic.
Reading the tea leaves, Reddit probably has a few more AI deals in the works similar to the one it announced pre-IPO with Google (GOOGL). I think Huffman realizes these deals will help reach profitability ahead of when most investors currently believe.
Josh Schafer
Reddit opens trading at $47
Shares of Reddit (RDDT) opened on the New York Stock Exchange at $47 per share.
The stock quickly gained further, sitting at about $55 per share less than 10 minutes into trading. It has now gained roughly 60% from its IPO price of $34.
Josh Schafer
Industrials, Consumer Discretionary lead S&P 500 rally
The S&P 500 (^GSPC) is up about 0.6% in afternoon trade and once again it is sectors other than tech leading the charge.
As was the case following yesterday's Federal Reserve press conference that included the central bank upgrading its outlook for economic growth this year, Industrials (XLI) and Consumer Discretionary (XLY) are leading the eleven sectors on the day.
Ines Ferré
Dow up 300 points, touches new high
The Dow Jones Industrial Average (^DJI) rose more than 300 points to touch new highs on Thursday.
Goldman Sachs (GS), Intel (INTC) and Home Depot (HD) led the gains. The major average's rise comes despite a 3% fall in Apple (AAPL) shares following a DOJ lawsuit against the iPhone maker.
Ines Ferré
Reddit shares indicated to open up to 52% higher than IPO price
Reddit shares are indicated to open between $50 and $52 per share, up to 52% higher than the social media company's IPO price of $34 per share.
The platform's debut on the New York Stock Exchange on Thursday is expected to give the markets an indication of what other companies waiting on the IPO sidelines can expect after a two year lull in public offerings.
Ines Ferré
Bank stocks gain, Goldman Sachs hits 52-week highs
Bank stocks jumped on Thursday after the Federal Reserve maintained rates unchanged on Wednesday but continued to hint at rate cuts later this year.
Goldman Sachs (GS) rose more than 3.5% to hit a 52-week high during the session. The stock was hovering above $410 per share.
The S&P 500 Financial Sector ETF (XLF) has risen 11.6% since the start of the year as investors have rotated into bank stocks in anticipation of an easing of monetary policy this year.
Ines Ferré
Reddit shares indicated to open up to 35% higher than IPO price
Reddit shares are indicated to open anywhere between $42 and $46 per share, as much as 35% higher than the the social media company's IPO price of $34 each.
Indication ranges give investors an idea of where the stock could open. Those figures could change leading up to the moment of listing.
Reddit will trade under the ticker symbol RDDT on the New York Stock Exchange.
Ines Ferré
Reddit public debut seen as litmus test for IPO market
Investors are keeping a close eye on Reddit's IPO after the social media platform priced its initial public offering at $34 per share, valuing the company at roughly $6.4 billion.
The company's debut on the New York Stock Exchange on Thursday has been highly anticipated, given the lull in public listings over the past two years. Reddit is the first major social media company to go public in five years.
The user-generated discussion-style platform has been around since 2005, but it gained increased recognition during the meme frenzy in 2021. At that time, retail traders on the subreddit WallStreetBets encouraged short squeezes on shares of video game retailer GameStop (GME), theater chain (AMC), and other heavily shorted stocks.
The IPO is expected to gauge investors’ appetite for tech-related offerings at a time when monetary policy is tight.
Read more here.
Ines Ferré
Apple stock extends decline following DOJ suit
Apple (AAPL) shares sank nearly 3% after the Department of Justice filed an antitrust lawsuit against the iPhone maker.
The lawsuit accuses Apple of maintaining an illegal monopoly on smartphones by blocking competitors' access to hardware and software features on its devices.
An Apple statement released shortly after the suit was filed read, in part, "We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it."
Ines Ferré
Apple stock falls on expected DOJ antitrust suit
Apple (AAPL) shares sank 1.5% on Thursday amid an expected antitrust suit from the Justice Department against the iPhone maker.
The market anticipates law enforcement officials will call out Apple for allegedly using its hardware and software to block competitors from accessing features of its iPhone.
Apple shares are down about 5% year to date.
Ines Ferré
Stocks open higher as Fed buzz lifts markets, Reddit IPO on deck
Stocks opened higher on Thursday, adding to Wednesday's market gains after the Federal Reserve hinted once again it will likely cut interest rates sometime this year.
The S&P 500 (^GSPC) rose 0.5%, solidly trading above the 5,200 level. The Dow Jones Industrial Average (^DJI) rose 0.2%, while the tech-heavy Nasdaq 100 (^IXIC) moved up 0.9%.
Investors will pay close attention to Reddit's IPO on Thursday. The social media platform priced its shares at $34 each, valuing the company at about $6.4 billion.
The platform's debut on the New York Stock exchange has been highly anticipated, given the lull in public listings over the past two years. Reddit is the first major social media company to go public in five years.
