US stocks closed higher after the Federal Reserve (Fed) cut interest rates by 25 basis points at its FOMC meeting yesterday.
The market rise was also supported by a surge in chipmaker Intel shares, after Nvidia decided to take a stake in the company.
Intel shares recorded their biggest daily gain since October 1987, jumping 22.8% after Nvidia announced a $5 billion investment in a struggling US chip manufacturing facility.
Nvidia shares rose 3.5%, recovering losses on Wednesday after a report said the Chinese technology company may stop buying its chips.
The Dow Jones Industrial Average rose 0.27% to 124.10 points, the S&P 500 rose 0.48% to 31.61 points, while the tech-focused Nasdaq Composite Index rose 0.94% to 209.40 points.
In other news, Fed Chairman Jerome Powell on Wednesday stressed that labor market weakness is now a priority, signaling the possibility of another rate cut at the next policy meeting.
In addition, new data also showed that US jobless claims fell last week, but the labor market remained weak due to a decline in labor demand and supply.
The interest rate cut is also expected to continue supporting Wall Street's recent gains driven by hopes of monetary easing and a resurgence in artificial intelligence (AI) stocks.
Meanwhile, Darden Restaurants shares fell 7.7% after the Olive Garden parent company reported weak quarterly results.
Volume on the US exchange was worth $19.30 billion, compared with an average of $16.67 billion over the full 20 trading days.
