Apple share price ends at record closing high after US Federal Reserve signals interest rate cuts

Apple share price ended at a record closing high on Wednesday led by a broader rally in the US stock market after the US Federal Reserve kept interest rates unchanged and signaled lower borrowing costs next year.

Apple shares jumped 1.7% to end the day at $197.96 apiece, beating the iPhone maker’s previous record high close of $196.45 on July 31. Apple stock price hit an intraday high of $198.00, shy of its record high of $198.23 hit on July 19.

Apple’s market capitalization soared to $3.08 trillion, keeping its tag as the world’s most valuable company.

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The rally in Apple share price propelled the Dow Jones Industrial Average up 1.4% to its record high close since January 2022.

Apple shares have surged 52% so far in 2023, making a major contribution to the Dow’s 12% recovery over that time, and to the S&P 500’s 23% rally in the same period, Reuters reported.

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Meanwhile, Wall Street indices surged on Wednesday after the US Fed held interest rates steady and said it sees lower borrowing costs in 2024.

The Dow Jones Industrial Average jumped 512.3 points, or 1.4%, to 37,090.24, while the S&P 500 rallied 63.39 points, or 1.37%, to 4,707.09. The Nasdaq Composite ended 200.57 points, or 1.38%, higher at 14,733.96.

The US Fed kept the benchmark lending rate unchanged in the range of 5.25% to 5.50% and signaled that the interest rate hike cycle is over. the key interest rates unchanged on Wednesday and foresees three rate cuts next year.

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The Fed Chair Jerome Powell-led Federal Open Market Committee (FOMC) also cut the median projection for interest rates at the end of 2024 to the midpoint between 4.50% and 4.75%, signaling they now expect 75 basis points (bps) of cuts from the current levels next year.

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(With inputs from Reuters)