The U.S. stock market neared its all-time high after the Federal Reserve cut its main interest rate to bolster the job market, and hopes strengthened for more cuts to come in 2026.

The S&P 500 climbed 0.7% and ended just shy of its all-time high set in October. The Dow Jones Industrial Average jumped 1%, and the Nasdaq composite rose 0.3%.

The rate cut was widely expected, but investors said comments from Fed Chair Jerome Powell may have been less harsh about closing off the possibility of future cuts than Wall Street had been bracing for.

On Wednesday:

The S&P 500 rose 46.17 points, or 0.7%, to 6,886.68.

The Dow Jones Industrial Average rose 497.46 points, or 1%, to 48,057.75.

The Nasdaq composite rose 77.67 points, or 0.3%, to 23,654.16.

The Russell 2000 index of smaller companies rose 33.36 points, or 1.3%, to 2,559.61.

For the week:

The S&P 500 is up 16.28 points, or 0.2%.

The Dow is up 102.76 points, or 0.2%.

The Nasdaq is up 76.03 points, or 0.3%.

The Russell 2000 is up 38.12 points, or 1.5%.

For the year:

The S&P 500 is up 1,005.05 points, or 17.1%.

The Dow is up 5,513.53 points, or 13%.

The Nasdaq is up 4,343.36 points, or 22.5%.

The Russell 2000 is up 329.45 points, or 14.8%.