Michelle ThompsonThursday marked a significant upswing for Wall Street, with the Dow Jones Industrial Average edging closer to the historic 40,000 milestone, a level it has never reached in its 128-year history. This surge was fueled by optimism following the Federal Reserve’s decision to maintain interest rates and its projection for three rate cuts this year, which sent stocks soaring on Wednesday. All three major indexes reached new highs, with the S&P 500 surpassing the 5,200 mark for the first time.
The bullish trend continued on Thursday as all three indexes closed at record highs once again. The Dow Jones rose by 269 points, or 0.7%, hitting a new high of 39,781.5. The S&P 500 climbed 0.3% to reach an all-time high of 5,241.53, while the Nasdaq, known for its tech-heavy composition, grew 0.2%, also setting a new record at 16,401.84.
This positive momentum extended globally, with European and Asian stocks experiencing gains. Switzerland’s central bank made a noteworthy move by becoming the first among wealthy, advanced economies to cut its interest rate on Thursday, while the Bank of England maintained its rate.
Investors in the US now anticipate a higher likelihood of the Fed initiating rate cuts in June, with CME Group’s FedWatch tool indicating a nearly 74% probability, up from 59% forecasted the previous week.
Amidst the market activity, Reddit made its trading debut on the New York Stock Exchange under the ticker symbol ‘RDDT.’ The company’s initial public offering was priced at $34 per share on Wednesday, valuing Reddit at approximately $6.5 billion. Shares began trading at $47 on Thursday afternoon, reaching a high of $57.80, marking a 70% increase from the IPO price. At its peak, Reddit’s market capitalization reached around $10.9 billion.
Overall, Reddit’s stock closed the day with a gain of over 48%.
