Markets have finally processed the good news

This report is from today’s CNBC Daily Open, our international markets newsletter. The CNBC Daily Open brings investors all the information they need to know, wherever they are. Like it? Subscribe. here.

New Highs
We The stock price rose on Thursday. S&P 500 and Dow Jones Industrial Average A new record was set, but tech stocks dominated Nasdaq Composite Index Asia-Pacific markets were mostly higher on Friday, boosted by gains in technology stocks, marking the fourth-best day this year. Japan’s Nikkei rose about 1.7% after the country’s core consumer price index rose 2.8% from a year earlier, as expected.

Interest rates in China and Japan remain stable
Asia’s two major central banks decided on interest rates on Friday. The People’s Bank of China unexpectedly kept its one-year and five-year prime lending rates unchanged at 3.35% and 3.85%, respectively. The Bank of Japan also kept its policy interest rate unchanged at “around 0.25 percent,” which was in line with forecasts in a Reuters survey.

Rapid growth in technology
Investors flocked to tech stocks after a day of digesting the Federal Reserve’s interest rate cut. Tesla It increased by 7.4% NVIDIA 4% increase, apple The increase in these stocks was due to the Nasdaq The 2.5% increase was the fourth-biggest one-day gain in 2024. The biggest gain this year was a 3% increase on Feb. 22.

“Readjustment”
Federal Reserve Chairman Jerome Powell’s use of the word “recalibration” appeared to reassure investors that the central bank’s 50 basis point rate cut wouldn’t be that significant. That’s worrying, because it suggests the Fed is no longer responding to a slowdown, but instead shifting its focus to making sure employment doesn’t fall any further, writes CNBC’s Jeff Cox.

[PRO] Commodity price trends
Stocks have risen in response to the Fed’s interest rate cuts, and while lower interest rates tend to increase demand for goods, it’s not always that simple. To predict how commodities such as gold, copper and oil will perform, analysts at Citi and HSBC looked at past movements after rate cuts.

“Twenty-four short hours have brought sunshine and flowers where rain once fell,” sang 1950s American star Dinah Washington.

Washington is singing about market trends. Right after the Fed announces Following Wednesday’s big rate cut, stocks hit new highs but fell by the end of the day.

But 24 hours later, investors decided that the half-point cut did not signal the start of a recession, and major stock indexes rallied to close at record highs.

of S&P It rose 1.7% to close at 5,713.64, marking the first time the composite index has broken through the 5,700 ceiling. Dow The index rose 1.26% to close at 42,025.19, surpassing the 42,000 mark for the first time.

of NasdaqSupported by the rise of stocks such as Tesla, NVIDIA and applehad the biggest gain among the major stock indexes, rising 2.51%, its fourth-best day this year.

While history has shown that September is bad for stocks, it also shows that when the S&P hits an all-time high in September, the fourth quarter is likely to continue to be strong — a pattern that has happened 20 out of 22 times since 1950, Oppenheimer noted.

In fact, BMO is so bullish on the market that the bank raised its year-end targets. S&P The number was 6,100, up 8.6% from Wednesday’s close and the highest forecast on Wall Street.

“As with our previous target increase in May, we continue to be surprised by the strength of the market rally and again judge that something more than an incremental correction is necessary,” chief investment strategist Brian Belski wrote in a client note on Thursday.

At the end of Washington’s song, she whispers, “How much a day can change / And you’re the difference,” and perhaps Powell feels as if Washington is serenading her.

–CNBC’s Alex Harring, Fred Imbert, Hakyung Kim and Lisa Kailai Han contributed to this story.