https://apnews.com/article/stock-markets-inflation-interest-rates-00104572343cfc006f7036c4fbbf4b71

NEW YORK (AP) — A powerful rally across Wall Street sent the Dow Jones Industrial Average to a record on Wednesday after the Federal Reserve indicated that the cuts to interest rates investors crave so much may be coming next year.

The Dow jumped 512 points, or 1.4%, to top 37,000 and surpass its prior peak of 36,799.65 set at the start of last year.

Other, more widely followed indexes of U.S. stocks also leaped. The S&P 500 rose 1.4% and is within 2% of its own record. The Nasdaq composite also gained 1.4%.

Wall Street loves lower interest rates because they can relax the pressure on the economy and goose prices for all kinds of investments. Markets have been rallying since October amid rising hopes that cuts may be on the way.

Rate cuts particularly help investments seen as expensive, lower quality or that force their investors to wait the longest for big growth. Some of Wednesday’s bigger winners were bitcoin, which rose nearly 4%, and the Russell 2000 index of small U.S. stocks, which jumped 3.5%.

Apple was the strongest force pushing upward on the S&P 500, rising 1.7% to its own record close. It and other Big Tech stocks have been among the biggest reasons for the S&P 500’s 22.6% rally this year.

All the excitement came as the Federal Reserve held its main interest rate steady at a range of 5.25% to 5.50%, as was widely expected. It’s hiked that rate up from virtually zero early last year in hopes of slowing the economy and hurting investment prices by exactly the right amount: enough to snuff out high inflation but not so much that it causes a painful recession.