U.S. stocks extend gains amid rate cut hope
NEW YORK, April 24 (Xinhua) -- U.S. stocks ended higher on Thursday, after comments by a Federal Reserve official bolstered odds that the central bank will cut interest rates as early as June.
The Dow Jones Industrial Average rose 486.83 points, or 1.23 percent, to 40,093.4. The S&P 500 added 108.91 points, or 2.03 percent, to 5,484.77. The Nasdaq Composite Index increased by 457.99 points, or 2.74 percent, to 17,166.04.
Ten of the 11 primary S&P 500 sectors ended in green, with technology and communication services leading the gainers by going up 3.54 percent and 2.31 percent, respectively. Meanwhile, consumer staples bucked the trend by going down 0.96 percent.
Beth Hammack, president of the Federal Reserve Bank of Cleveland, dismissed the possibility of an interest rate cut in May but indicated that the central bank could take action as early as June - provided there is clear evidence about the trajectory of the economy.
"If we have clear and convincing data by June, then I think you'll see the committee move if we know which way is the right way to move at that point in time," Hammack said Thursday during an interview with CNBC when asked specifically about June.
"I think the markets were clearly moving on some of the Fed comments around potentially cutting rates," Chris Zaccarelli, chief investment officer at Northlight Asset Management, said in a phone call. "There's a bit of a risk-on move in equities and tech getting a bid."
Shares of Nvidia, Meta, Amazon, Tesla, and Microsoft all finished higher, helping the major indexes notch a third consecutive day of gains. The tech sector, however, remains under pressure amid the White House's increasingly aggressive trade posture, especially toward China, which has weighed on investor sentiment.
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