S&P 500 Hits Record Highs

Investing.com– The S&P 500 closed at fresh record highs Thursday, as the post-election rally continued after the Federal Reserve delivered a widely expected rate cut.

At 4:00 p.m. ET (2100 GMT), the S&P 500 index gained 0.8% to close at a record high of 5,973.10. The Dow Jones Industrial Average closed flat, and the NASDAQ Composite added 1.5% to also clinch a closing record high.

Federal Reserve Rate Cut Meets Expectations

As many had expected, the Fed cut rates by 25 basis points on Thursday, taking its benchmark rate to a range of 4.5% to 4.75%. This marked a downshift from the 50 basis point rate cut that kicked off the cutting cycle in September, as incoming economic data mostly surprised to the upside.

The outlook for further rate cuts has cooled somewhat, with some on Wall Street now expecting just two cuts amid concerns about the inflationary impact of a large government budget deficit.

"Our own base-case assumption remains two additional 25 basis point cuts from the Fed in December and January before pausing at a 4% to 4.25% range for the rest of 2025," RBC noted in a Thursday report.

Moderna, Warner Bros Deliver Surprise Profit; Lyft Surge on Upbeat Guidance

Moderna (NASDAQ:MRNA) stock gave up early gains to trade 2% lower, even as the drugmaker reported a surprise net income in the third quarter and introduced changes in its leadership team. The earnings beat was driven by higher-than-expected COVID-19 vaccine sales, but Moderna expects lower sales in 2024 compared to last year.

Warner Bros Discovery (NASDAQ:WBD) stock rose over 12% after the mass media giant reported a surprise third-quarter profit, though it missed revenue estimates as its studio business suffered due to fewer blockbuster releases.

Lyft (NASDAQ:LYFT) stock surged about 24% after the ride-hailing company posted sales above expectations, upbeat guidance, and announced a new partnership for self-driving cars.

Lyft's guidance and strong quarter "show that management's strategy of improving the customer experience, the cadence of product innovation, and pricing is starting to bear fruit, driving active riders and rider frequency growth," Truist Securities commented.

Numbers from Block (NYSE:SQ), Pinterest (NYSE:PINS), and Rivian Automotive (NASDAQ:RIVN) are due after the close.

Qualcomm Gives Up Gains; ARM Holdings Shines

Qualcomm yielded most of its gains even after its fiscal Q4 results topped analysts' estimates and the chipmaker announced a $15B stock buyback program. UBS noted that Qualcomm's story continues to shift from being a "wireless communications supplier" to one focused on leveraging its compute expertise for edge applications where power and performance are key.

Arm Holdings ADR (NASDAQ:ARM) also delivered quarterly results that exceeded expectations, sending its shares up more than 4%.

(Peter Nuse, Ambar Warrick contributed to this article.)