After Fed rate cut, the next 6 months will be crucial for investors. Here’s why. Traders brace for volatility as more than $5 trillion in options set to expire in latest ‘triple witching’. Nvidia’s stock is surging. Here’s how it tends to perform after interest-rate cuts.

The Dow closed 522 points, or 1.3%, higher, reaching a new record after passing the 42,000 level for the first time. The S&P 500 rose 1.7%, topping 5,700 for the first time and also closing at a fresh high. The Nasdaq Composite added 2.5%.

As the Federal Reserve kicks off a long-awaited rate cutting cycle, some investors are wary that richly valued U.S. stocks may have already priced in the benefits of easier monetary policy, making it harder for markets to rise much further.