U.S. stocks surge as S&P 500 hits record high

The S&P 500 stock index closed at an all-time high Thursday, following the Federal Reserve's announcement on Wednesday that it would consider cutting interest rates to keep the economy in expansion mode. The S&P 500 added 28 points, or nearly 1%, to close at 2,954 -- that topped the previous high of 2,946 on April 30. The Dow added 249 points, rising 1% to 26,753, marking its highest trading level since its Oct. 3, 2018, close of 26,828. The Nasdaq added 64 points, climbing 0.8% to 8,051. That's just 0.7% below its May 3 all-time high of 8,164. Stocks are rising amid signs of an economic slowdown. IHS Markit forecasts U.S. GDP growth of 1.8% for the second half of 2019 -- that would be down sharply from growth of 3.1% in the first three months of the year and 2.9% for all of 2018. Declining economic activity, muted inflation and trade tensions with China could also spur the Fed to dial back rates, according to economists.