U.S. stock markets hit record highs after Fed’s pre-election interest rate cut

It was a good day to be rich Thursday.

Stocks on Wall Street were way up, closing at record highs following the Federal Reserve Bank's 50 basis point interest rate cut — its first since 2020 and just six weeks before the 2024 election between former President Donald Trump and sitting U.S. Vice President Kamala Harris.

The Dow Jones Industrial Average was up 522.09 points Thursday — a 1.26% gain.

The Nasdaq did even better — up 440.68 points or 2.51%.

The Nasdaq closed at 18,013.98. The Dow closed at 42,025.19 and the S&P at 5,713..64 (up 1.7%), according to Google Finance.

Those are record highs.

The Nasdaq is up 162% since the COVID-19 pandemic. The Dow is up 119% since the pandemic. The S&P is up 117% since COVID, according to Google Finance.

The interest rate cut buoyed technology, homebuilding, home improvement and other stocks.

The stock boost is good news for 401-K retirement accounts.

It's great news for the wealthy. An analysis by the Federal Reserve shows the wealthiest 10% of Americans own 93% of the stock market wealth.

The bottom 50% own 1% of stock wealth, according to the analysis.

Fed Chairman Jerome Powell said the rate cut — 48 days before the election — was not politically motivated.

The interest rate cut is expected to help lower mortgage interest rates and in turn real estate markets.

Housing prices hit record highs during and after but have been impacted by higher interest rates.

The Fed raised rates to address 40-year highs with inflation after pandemic spending and central banks monetary infusions during the pandemic.

Powell said when those rate increases commenced they were focused on cutting into workers' wages and spending powers.

U.S. prices are up 23% since COVID and 20% since President Joe Biden and Harris took office in 2021, according to the U.S. Bureau of Labor Statistics.