02:19 PM EDT, 09/19/2024 (MT Newswires) -- US benchmark equity indexes were higher intraday as traders evaluated the Federal Reserve's Wednesday decision to reduce interest rates by 50 basis points.

The Nasdaq Composite was up 2.9% at 18,077.7 after midday Thursday, while the S&P 500 rose 1.9% to 5,727.2. The Dow Jones Industrial Average advanced 1.5% to 42,108.1. Among sectors, technology led the gainers with a 3.5% jump, while utilities saw the steepest decline.

The central bank's Federal Open Market Committee cut its benchmark lending rate to a range of 4.75% to 5% Wednesday. A Bloomberg-compiled consensus had indicated a smaller 25-basis-point reduction.

"To show their commitment to not falling behind the curve and in their confidence in inflation's progress, (Fed Chair Jerome) Powell asserted a large first move was warranted," Morgan Stanley said in a note to clients.

The FOMC's updated Summary of Economic Projections showed Wednesday that policymakers trimmed their median federal funds rate outlooks from 2024 through 2026 while raising their unemployment rate expectations.

"The strong signal from the committee is probably that they are more concerned about the risks facing the outlook for the US economy and seeking to counter them with more easing," Scotiabank's head of capital markets economics, Derek Holt, said in a note.

Still, Deutsche Bank said Powell "projected a view of a fundamentally strong economy and a labor market that was still historically solid, even if it has cooled."

The US 10-year yield rose one basis point to 3.75% intraday, while the two-year rate was little changed at 3.61%.

In economic news, weekly applications for unemployment insurance in the US declined to its lowest level since May, government data showed.

"The (Fed) yesterday sent a strong signal that it will likely lower rates another (50 basis points) this year to preserve current labor market conditions and one week's claims data doesn't alter that," Oxford Economics said.

US existing home sales fell more than expected last month amid a decline in the single-family component, though lower rates may spur demand in the coming months, the National Association of Realtors reported.

West Texas Intermediate crude oil rose 1.6% to $72.06 a barrel intraday.

In company news, Darden Restaurants ( DRI ) maintained its full-year outlook despite reporting lower-than-expected fiscal first-quarter results amid slowing traffic in July. Separately, the company and ride-hailing giant Uber Technologies ( UBER ) said they entered into an exclusive multiyear delivery partnership.

Darden shares jumped 8.8%, the best performer on the S&P 500, while Uber ( UBER ) gained 3.1%.

Electric vehicle maker Tesla (TSLA) was among the top gainers on the S&P 500 and the Nasdaq, up 7.1%.

Parcel-delivery company FedEx ( FDX ) and homebuilder Lennar ( LEN ) are among the companies scheduled to report their latest quarterly financial results after Thursday's closing bell.

Gold was up 0.7% at $2,615.40 per troy ounce, while silver jumped 2.4% to $31.41 per ounce.