04:26 PM EDT, 09/19/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 closed at all-time highs Thursday, a day after the Federal Reserve decided to lower interest rates by 50 basis points.

The Dow rose 1.3% to 42,025.2, while the S&P 500 gained 1.7% to 5,713.6. The Nasdaq Composite jumped 2.5% to 18,014. Technology led the gainers among sectors with a 3.1% jump, while consumer staples and utilities saw the steepest declines.

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. The three US benchmark equity indexes closed lower on Wednesday.

"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 said.

Separately, 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 3.2 basis points to 3.72% Thursday, while the two-year rate fell 1.3 basis points to 3.59%.

In economic news, weekly applications for unemployment insurance in the US declined to the 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.

Manufacturing activity in the US Mid-Atlantic region rebounded more than expected this month as a jump in employment helped counter declines in orders and shipments, the Philadelphia Fed said.

West Texas Intermediate crude oil rose 1.6% to $72.01 a barrel Thursday.

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 8.3%, the best performer on the S&P 500, while Uber ( UBER ) closed 2.4% higher.

Electric vehicle maker Tesla (TSLA) was the top gainer on the Nasdaq and the second-best on the S&P 500, up 7.4%.

Drugmaker Moderna's (MRNA) shares dropped 2.6%, the steepest drop on the Nasdaq and among the worst on the S&P 500.

Gold rose 0.6% to $2,613.70 per troy ounce, while silver increased 1.5% to $31.16 per ounce.