US markets soared on Thursday (Sept. 19), following the Federal Reserve’s recent announcements, with both the Dow Jones and S&P 500 closing at all-time highs. The Dow Jones Industrial Average, composed of 30 major stocks, surged over 500 points, surpassing the 42,000 mark for the first time.

As the Fed gears up for a potential rate cut, US stocks hold steady. Learn how this key decision could influence the Dow Jones and Nasdaq indices today.

U.S. stocks rose after the Federal Reserve lowered its benchmark interest rates by 50 basis points to a range of 4.75% to 5%. That was the first rate cut in over four years that marked the beginning of a monetary-easing cycle in the world's largest economy.

The S&P 500 surged to a record high close on Thursday, the day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon. The blue chip Dow Jones Industrial Average also registered a record closing high,

The Dow Jones Industrial Average (SPGI) jumped 649 points Thursday afternoon to hit a new record high, as the Federal Reserve’s decision to slash interest rates by 50 basis points gave fuel to markets.