Nasdaq surges 2.5% while Dow, S&P 500 notch record highs

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Market indexes (^DJI, ^IXIC, ^GSPC) ended Thursday's trading session higher, the Nasdaq Composite catapulting 2.5% higher following yesterday's interest rate cuts by the Federal Reserve. The Dow Jones Industrial Average and S&P 500 notch new record highs.

Julie Hyman recaps the day's market moves, including in the Russell 2000 small-cap index (^RUT) and the S&P Equal Weight Index (^SPXEW, ^SP500EW), while Jared Blikre checks out the sector action.

For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime.

This post was written by Luke Carberry Mogan.

00:00 Speaker A

There's the closing bell on Wall Street, and now it's market domination overtime sponsored by Tasty Trade. We're joined by Jared Blickre to get us up to speed on the action from today's session. Let's start with with where the major averages ended the day here, and it looks like records for the Dow and the S&P 500. Here's the S&P 500, 39th record close of the year. It touched an intraday record during the session and now has closed at a record up 1.7% on the session. The Nasdaq composite not at a record, but the winner on the day in term percentage terms, up 2 and 1/2 percent. And the Dow Jones Industrial Average up 522 points, 1 and 1/4%, closing at a record after hitting an intraday record. It's interesting if you broaden it out beyond the three major averages, however, because the S&P equal weight index also at a record here, up less than the S&P 500 but enough to push it to that level. We've talked a lot about the broadening that we have seen, even though big tech did help lead today, it wasn't just participation there. That's also evidenced by the Russell 2000. We have heard so many investors talk about how when the Fed began to cut interest rates and even before, that small caps were one of their vehicles of choice. Now, the Fed has cut, and you see these small caps outperforming the S&P 500, although, again, still trailing the Nasdaq composite on the day. So really seeing this broad rally across stocks and across asset classes for that matter. Jared's got a closer look at today's action. Hey, Jared.

02:43 Jared

Hey there. A great analysis. Let me just go back to the S&P 500. I'm going to put a two-month chart with some candlesticks here, and I want to point out yesterday's price action because that was looking very ominous. I'm actually covering up today's, but I just want to point out we had ventured into record territory before the meeting and then closed before the prior day's low. That is a bearish pattern. But today we are closing quite above all of that mess right there. And so that negates it all. That was very important. Uh, we still have some warnings, some omens on the horizon, but I'm going to talk about that with Josh in about 30 minutes. Now, the sectors came in pretty strong. Tech, XLK is up almost 3% followed by consumer discretionary, industrials. Those were the three outperformers. And then we had three underperformers, three in the red, real estate, staples and utilities, utilities down the most, about six tenths of a percent. Those were the three defensive sectors. So overall, a really bullish day as you would expect. Um also, here are our leaders. Bitcoin had a really nice day, a 5% follow-through from yesterday. Chinese stocks on the move. Going to talk about that with you, Josh, in a second. And also chip stocks really flying high here. Only solar ending in the red. And just want to close with a seasonality point here. September, the final two weeks of September, this goes January to December, uh two bars for each month, the first 10 days, the first 10 trading days, last 10 trading days of the month. And here we are in September, that big blue, uh cyan bar to the downside is what usually happens in the S&P 500. So that is a tailwind, despite all the strength that we've seen in the markets. We do have some of those warnings. Guys,