US stocks soar after Fed's jumbo rate cut

​​​​​​​​​​​​​​​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - Major US stock exchanges soared at the opening Thursday after the Federal Reserve delivered its largest interest rate cut in 16 years.

The Dow Jones industrial average rose 362 points, or 0.87%, to 41,864 at 9.51 a.m. EDT (1351GMT). The S&P 500 jumped 70 points, or 1.25% to 5,697.

The Nasdaq Composite, meanwhile, soared 340 points, or 1.93%, to at 17,913.

The Fed lowered the interest rate by 50 basis points to a range between 4.75% - 5.0% on Wednesday, starting its monetary easing aggressively. The move marked the first cut by the central bank since the beginning of the coronavirus pandemic.

Except for the emergency rate cuts during the start of the pandemic, the last time the Fed delivered a jumbo rate cut of 50 basis points was during the global financial crisis in 2008.

The VIX volatility index, referred to as the "fear index," dove 8.4% to 16.69. The 10-year US Treasury yield added 1.6% to 3.750%.

The US dollar index increased 0.44% to 101.03, while the euro was steady against the dollar, trading at $1.1119.

Precious metals were in positive territory. Gold added 0.7% to $2,577 per ounce and silver rose 2.5% to $30.82.

Oil prices rose around 0.7%, with global benchmark Brent crude at $74.14 per barrel and US benchmark West Texas Intermediate at $70.44.