Shortly after market open, the Dow Jones Industrial Average rose 1.3% to a new record of 42,105, the S&P 500 rose 1.6% to its new all-time high of 5,713 and the tech-heavy Nasdaq surged 2.3%, though it remains 4% below its July peak.

Indexes rose Thursday as investors digested Wednesday's jumbo rate cut from the Fed and a fall in weekly jobless claims.

U.S. stocks rose after the Federal Reserve lowered its benchmark interest rates by 50 basis points to a range of 4.75% to 5%. That was the first rate cut in over four years that marked the beginning of a monetary-easing cycle in the world's largest economy.

The Dow Jones industrial average set a record, as Wall Street geared up for the most anticipated meeting of the Federal Reserve in years

Don't break out the bubbly just yet. A resilient U.S. economy and a protracted path to the Federal Reserve's 2% annual inflation target could mean that interest rates remain "relatively higher for longer,

Stock futures are pointing to a higher open for major U.S. indexes on Wednesday as market participants await the Federal Reserve's first interest rate cut in more than four years.

The major market averages were muted on Wednesday, as investors await the Federal Reserve's decision on the monetary policy later in the day.  Early on and the S&P 500 (SP500) was near flat, the Nasdaq Composite (COMP.