Nasdaq blasts off as stocks surge the day after Fed rate cut

After closing Wednesday lower, US stocks have woken up to the reality of the Federal Reserve's 50-basis-point cut and are off to the races. The Dow Jones Industrial (^DJI) is rising by over 1%, while the S&P 500 (^GSPC) sees gains of 1.5% and the Nasdaq Composite (^IXIC) blasts off by 2.3%.

Seana Smith and Brad Smith highlight Thursday morning's market momentum, namely in the tech-heavy Nasdaq and semiconductor sectors, the bond market (^TYX, ^TNX, ^FVX), and bitcoin's (BTC-USD) price action.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

Oh, wow.

We've got a bell ringing.

Shawna, we do.

We got a bell ringing here.

You can see playing out in Midtown and also downtown at the New York Stock Exchange.

A lots of excitement from the confetti there from the NASDAQ.

When you take a look at the major averages, we're right near record highs at record highs here at the Open, talking about the huge move to the upside.

You've got the Dow Jones industrial average.

Let's pull up the big number here, up at just over 1% shooting high here, up over 500 points here at the Open, you got the S and P 500 also moving to the upside now above 5700 waiting for the Tech or the NASDAQ composite.

Excuse me to open up here and you can see gains of just about over 2% here at the open and comparing that to the movement that we're seeing play out in the bond market, you take a look at yields actually moving to the upside now at 375, a bit unusual there.

Take a look inside the centre action technology by far the leader that's reflected as the NASDAQ is up over 2%.

You got the XL K up nearly 3% here in early trading.

Consumer discretionary among the top performers there, as well as the materials flipping it over.

Utility is the only sector to open the trading day here in the red.

And let's dig into the tech trade that seems to be working here at the Open.

Until you look at some of those larger cap tech names.

You got Apple Microsoft all up just about 2% as well as Google and Amazon Video.

We were just talking about the out performance there.

That's up about 4% here at the Open.

So certainly risk on sentiment seems to be playing out within the market.

And we were just talking about the fact that we are seeing a lot more excitement surrounding some of those chip plays and namely NVIDIA leading that charge.

But you've also got Taiwan Semiconductor that suck up just about 4.5% Broadcom a MD Qualcomm among the gainers here today.

So again, a lot of move into the upside here across the screen and taking a look inside the Dow, because why not look at a heck of a lot of green there as well.

You've got some.

You got some plays trading in the rattle.

Not too many Walmart risen among the outliers there in terms of that downward movement.

But again, in terms of the out performance, a lot of that driven by those larger cap tech names.

And then you also have a name like Home Depot Here up just about 1.5% bred.

All right, thanks so much, Sean.

Uh, let's get to Yahoo.

Finance is Jared Bli for more.

And a look at what is moving here in a deeper dive here.

Jared, what are you saying?

Well, let's start with the S and P 500 the kahuna, and I'm going to show you some candlesticks here.

And this might be a new record here.

Uh, we're seeing S and P up 1.61%.

And there was a concern yesterday that we were selling off near these record highs.

But this pretty much destroys that pattern.

Now you got to wait until the close.

If we were to close within yesterday's range, Uh, that could be an issue, but so far things are looking fairly bullish.

Um, I just said a few minutes ago 50 basis points has me a little bit concerned, but we are not seen That concern reflected today in the markets.

Now, here's a 10 year T note yield.

It is up about seven basis points to 3.75% and you can see this is over three months as well.

The trend definitely down, and but we are lifting off here.

This is the opposite direction.

You would think when the Fed is cutting rates.

But nevertheless, uh, here we have the tenure up a little bit.

Uh, but we do see a widening of the yield curve the Fed act at the short end of the market.

So, uh, we'll have to see over the long run.

Uh, end, uh, ends up.

Now, here we have the Dow, but I wanted to switch back to the sectors.

Just show you real quick that the mega cap sectors of tech and consumer discretionary really jumping right here.

And here's the NASDAQ, where you see NVIDIA up 4% apple up.

Two Microsoft 2.5.

Uh, meta up two as well.

So looking really strong within the NASDAQ.

And then finally, let's take a look at crypto because I have seen Bitcoin jumping this morning up 5.5% right back around 60,000.

It's been seesawing around these levels for several months, but here we are down about 5% over that time two months.