*

Wall Street stocks advance after Fed cut

*

Pound dips after BoE leaves rates unchanged

*

US Treasury 10-year yields rise

*

European shares gain

(New throughout, with U.S. market open and new analyst quote)

By Chibuike Oguh and Marc Jones

NEW YORK/LONDON, Sept 18 (Reuters) - World equity

markets rose to a fresh new peak on Thursday while the U.S.

dollar gained against major peers buoyed by the Federal

Reserve's interest rate cut, while the pound dipped slightly

after the Bank of England kept rates unchanged.

On Wall Street, all three indexes were trading higher with

the Nasdaq gaining more than 1%. Intel ( INTC ) jumped more than

25% after Nvidia ( NVDA ) said it would invest $5 billion in the

struggling U.S. chipmaker. Nvidia's ( NVDA ) shares were up 2.6% on the

session.

The Dow Jones Industrial Average rose 0.45%

to 46,227.50, the S&P 500 rose 0.71% to 6,647.52 and the

Nasdaq Composite rose 1.07% to 22,499.15.

The pan-European STOXX 600 index rose 0.81%. MSCI's

gauge of stocks across the globe rose 0.40%

to 980.25, topping the previous session's record.

"Today's market action is pretty interesting," Sandy

Villere, portfolio manager at Villere & Co in New Orleans.

"The Nasdaq is up more than the Russell 2000. I would've

thought the Russell 2000 would start to act really well in the

face of what looks like two more cuts in 2025. Small caps tend

to do quite well and in falling interest rates, but I think with

the investment of Nvidia ( NVDA ) into Intel ( INTC ) kinda has the NASDAQ maybe

up just from that fundamental standpoint."

The Fed cut rates by 25 basis points on Wednesday and its

closely watched "dot plot" had pointed to two more rate cuts

over its remaining two meetings this year, but only one

additional reduction in 2026.

The yield on benchmark U.S. 10-year notes

rose 5.1 basis points to 4.128%.

The BoE voted 7-2 to keep rates unchanged at 4% while

slowing the annual pace at which the BoE sells gilts it

purchased between 2009 and 2011 to 70 billion pounds from the

current 100 billion pounds, in line with economist forecasts.

Against the Swiss franc, the dollar

strengthened 0.43% to 0.792 and was up 0.71% to 148 against the

Japanese yen.

The euro down 0.3% at $1.1777 while the

sterling weakened 0.47% to $1.3561.