By Spencer Feingold
The stock market surged on Thursday with the S&P 500 closing at a record high, a day after the Federal Reserve left interest rates unchanged and signaled that they will be lowered next month.
The S&P closed up 1 percent hitting 2,954.18 points, beating the index’s previous record set on May 3. The Dow and the Nasdaq both missed record highs but closed up 249.17 points and 64.02 points respectively.
The positive momentum on Wall Street stems largely from the expectation that the Fed will cut interest rates next month to spur economic growth and avoid stagnation from the ongoing U.S. trade war with China.
On Wednesday, the Fed Chairman Jerome Powell said “news about trade has been an important driver of sentiment in the inter-meeting period, but we’re also looking at global growth. It’s really trade sentiments and concern about global growth, that are on our minds.”
“I’m sure that things will change before the next meeting,” he added.
The workplace messaging platform Slack enjoyed the favorable market conditions, soaring on its first day of trading. The company’s stock opened $38.50, way up from the $26 a piece reference price set by the New York Stock Exchange. The opening price gave the workplace messaging platform a valuation of over $23 billion. Slack’s ($WORK) shares closed at $38.62.
Meanwhile, investor drew optimism from the confirmed meeting between President Trump and Chinese President Xi Jinping at the G20 Summit in Japan next week. Experts warn, however, that a breakthrough is the trade dispute is unlikely to be announced following the meeting.