NEW YORK: US stocks ended firmer on Thursday (Dec 14), with the Dow Jones Industrial Average notching its second straight record high close, lifted by optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.

The Dow rose 158.11 points, or 0.43%, to 37,248.35, the S&P 500 gained 12.46 points, or 0.26%, to 4,719.55, and the Nasdaq Composite added 27.60 points, or 0.19%, to 14,761.56.

Apple hit an intra-day record high before surrendering some of its gains to close up 0.08%.

Tesla shares surged 4.9%, with about US$40 billion (RM186.9 billion) worth changing hands. Its turnover was more than double that of Nvidia, the next most traded company. The heavyweight chipmaker gained 0.5%.

Sectors that have underperformed this year also rose. Of the 11 S&P 500 sector indices, six closed higher, led by energy, up 2.94%, followed by a 2.62% gain in real estate .

The PHLX semiconductor index surged 2.7% to close at a record high. The Russell Index of smaller companies also jumped about 2.7%.

The Fed left interest rates unchanged on Wednesday, as expected, with chair Jerome Powell saying the historic tightening of monetary policy was likely over, as inflation falls faster than expected, and discussions on cuts in borrowing costs were coming “into view”.

Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.

“The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday’s (Wednesday’s) surge,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.

“While the market celebrates lower rates, it can question why yields are below 4%” as investors weigh the economic outlook, she added.

Adobe fell 6.35% after the Photoshop maker forecast annual and quarterly revenue below estimates.

US retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday. – Reuters