NEW YORK, Aug. 1 (Xinhua) -- U.S. stocks traded higher on Thursday, as investors digested the latest monetary policy of U.S. Federal Reserve and Fed chair's comments on future rate cuts.
At midday, the Dow Jones Industrial Average rose 253.91 points, or 0.95 percent, to 27,118.18. The S&P 500 rallied 27.92 points, or 0.94 percent, to 3,008.30. The Nasdaq Composite Index increased 117.70 points, or 1.44 percent, to 8,293.12.
Ten of the 11 primary S&P 500 sectors traded higher around midday, with the information technology sector up nearly 2.2 percent, leading the gainers.
Shares of Yum Brands rose over 4.5 percent, as the U.S. fast food chain reported second-quarter earnings that topped market estimates.
"We continue to leverage our unprecedented scale and expand our capabilities with the goal of enhancing franchise economics, accelerating growth and maximizing shareholder value," said Greg Creed, CEO of the company, in a statement.
The federal funds target range now stands at 2 percent-2.25 percent, which became the first reduced range since December 2008, when rates were reduced close to zero during the global financial crisis.
During a press conference on Wednesday, Fed Chairman Jerome Powell said that the central bank's cut was a "mid-cycle adjustment," adding that the action is "not the beginning of a long series of rate cuts."
The remarks later erased all the gains of the three major indexes of the day and sank the Dow by a tumble of over 470 points at one point in Wednesday's afternoon sessions, marking its worst day since May.
On the economic front, initial claims, or the number of Americans filing applications for unemployment benefits, rose moderately to 215,000 in the week ending July 27, said the Labor Department on Thursday.
The reading marked an increase of 8,000 from the previous week's level, which was revised up by 1,000 to 207,000. Enditem
