The S&P 500 index hit a record high on Thursday, after the Federal Reserve indicated that it could cut interest rates as soon as next month to offset growing risks to global and domestic growth.
The U.S. central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to “act as appropriate” to sustain economic health.
Wall Street’s main indexes have gained in recent weeks on expectations of a rate cut and hopes of a revival of trade talks between the United States and China.
The benchmark S&P 500 index, which has risen 7.4% so far in June and is on track to recoup its previous month’s losses, hit an intraday record high of 2,956.20 on Thursday.
“Chairman Jerome Powell’s comments that ‘the case for additional accommodation has strengthened’ was exactly what market participants wanted to hear,” said Robert Johnson, chief executive officer at Economic Index Associates in New York.