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Stocks continued their post-election rally on Thursday, with major U.S. indexes setting fresh all-time highs. The boost comes as the Federal Reserve announced it would lower its benchmark interest rate by a quarter-point, meeting investor expectations.

The S&P 500 and Nasdaq Composite increased by 0.7% and 1.5%, respectively, reaching new intraday and closing record highs. While the Dow Jones closed slightly lower, it too achieved an all-time high during the trading session. This follows Wednesday's significant gains, which were the strongest since 2022, after Donald Trump secured a decisive victory in the presidential election.

The Federal Reserve, concluding its two-day policy meeting, reiterated that it sees risks to its employment and inflation goals as balanced, repeating the language from its September statement. Fed Chair Jerome Powell emphasized the Fed's confidence in achieving a "soft landing" for the economy, predicting that the combination of policy recalibration, economic strength, and a robust labor market would help inflation decrease sustainably to 2%.

The rate cut marks the second consecutive easing of policy following two years of high interest rates implemented to curb post-pandemic inflation. This move has sparked notable gains in several stocks, with Zillow's shares rising by 24% after reporting strong third-quarter sales growth, and AppLovin surging by 46% on impressive earnings and a positive fourth-quarter outlook.

In contrast, Qualcomm saw a slight decrease of 0.2%, despite initially high gains following the announcement of quarterly earnings that exceeded Wall Street expectations and a $15 billion stock buyback. Arm Holdings recovered with a 4.1% increase after reporting better-than-expected earnings but issuing a disappointing sales outlook.

Large-cap technology stocks experienced across-the-board gains. Companies like Nvidia, Apple, Microsoft, Amazon, Alphabet, and Meta Platforms all posted increases. Tesla surged 2.9%, buoyed by optimism about potential benefits from Trump's presidency for the electric vehicle maker due to CEO Elon Musk's ties to the president-elect.

On the bond market, the yield on 10-year Treasurys was at 4.33%, a dip from 4.43% on Wednesday. This decline follows a recent rise as investors adjusted their expectations regarding the Fed's rate-cutting aggressiveness. Meanwhile, gold futures climbed 1.3% to approximately $2,710 per ounce, recovering from a 3% slide the previous day. Bitcoin also moved higher, trading around $76,500, nearing a new record high.

Under Armour shares jumped 23% as the athletic apparel maker reported better-than-expected results and increased guidance, signaling that CEO Kevin Plank's turnaround plan is bearing fruit. The company posted fiscal 2025 second-quarter adjusted earnings per share of $0.30, with revenue at $1.4 billion, exceeding forecasts.

CEO Kevin Plank highlighted the company's strategy to reposition Under Armour as a premium brand, noting improved gross margins due to lower costs and reduced discounting levels. The company also managed to cut selling, general, and administrative costs by 13%, pointing towards a successful turnaround underway.