S&P 500 Hits Record Highs Amid Fed Rate Cut, Strong Earnings from Warner Bros and Lyft

S&P 500 Closes at New High as Fed Rate Cut Spurs Market Gains

The S&P 500 index reached record highs on Thursday, continuing its post-election rally after the Federal Reserve announced a widely anticipated rate cut. The S&P 500 rose 0.8% to close at 5,973.10, while the NASDAQ Composite added 1.5% to also set a new high. The Dow Jones Industrial Average remained relatively flat.

Federal Reserve Cuts Rates to Meet Market Expectations

As expected, the Fed cut its interest rate by 25 basis points, adjusting the benchmark to a range of 4.5% to 4.75%. This reduction follows a 50-point cut in September and reflects moderated economic outlooks. Analysts are predicting two further cuts, bringing rates to between 4% and 4.25% by early 2025, per RBC projections.

Earnings Highlights: Warner Bros, Lyft, and Moderna

• Warner Bros Discovery shares surged 12% after reporting a surprise quarterly profit, despite lower revenue due to fewer blockbuster releases.
• Lyft saw a 24% jump following upbeat guidance and a promising new self-driving partnership. Truist Securities noted Lyft’s strategic focus on enhancing rider experience and product innovation.
• Moderna dropped 2%, despite a stronger-than-expected quarter due to COVID-19 vaccine sales. The company warned of potentially lower 2024 sales.

Qualcomm and ARM Holdings Boost Tech Sector

Qualcomm announced a $15 billion stock buyback following solid Q4 results, though its stock later dipped. ARM Holdings (NASDAQ) exceeded forecasts, rising 4% and reinforcing positive momentum in the tech sector.