Wall Street experienced a remarkable surge on Thursday as both the Dow Jones Industrial Average and the S&P 500 soared to record highs, a day after the Federal Reserve announced a significant interest rate cut. The Dow Jones climbed 522.09 points, marking a 1.3% increase to close at 42,025.19, breaking its previous record of 41,622.08. Throughout the day, it had reached an intraday high of 42,160.91, evidencing a robust rally spurred by the central bank’s move to cut rates by half-a-percentage point.

Similarly, the S&P 500 gained 2.5%, closing at an all-time high of 5,713.64, while the Nasdaq Composite also leapt by 2.5%, adding more than 400 points. The rise in these indices is attributed to the Fed's decision to initiate its easing cycle with a substantial rate cut and signaling potential further reductions in the future. Rate-sensitive growth stocks, which have spearheaded much of the current year's market rally, saw significant gains. Leading the charge were tech giants like Microsoft, up 1.8%, Tesla, which surged 7.4%, and Apple, which advanced 3.7%. In the semiconductor sector, Nvidia rose 4%, and Advanced Micro Devices increased by 5.7%, contributing to a 4.3% gain in the Philadelphia SE Semiconductor Index.

Market analysts are crediting the Fed's actions and its forecast for additional rate cuts as a critical factor behind the market's bullish behavior. The Fed's rate cut is seen as part of a broader strategy to maintain steady economic growth while keeping inflation and unemployment in check. The Federal Reserve's Chairman, Jerome Powell, assured that the economy is on stable ground, which helped alleviate concerns about a potential recession. This message was reinforced by better-than-expected jobless claims data, further bolstering investor confidence.

Traders are now focused on the likelihood of additional rate cuts, with the CME Group’s FedWatch tool indicating a 57.1% probability of a further 25 basis point reduction in November. Notably, BofA Global Research has adjusted its forecast, now anticipating a total of 75 basis points in rate cuts by the end of the year, up from an earlier projection of 50 basis points.

Technical analysis also highlights a promising outlook for the Dow's continued ascent. Following a successful retest of an ascending triangle pattern formed between July and September, the Dow's recent breakout suggests an upside target of 44,700 points. Key levels to monitor include 39,900, 39,200, and 37,800, which could act as potential support zones during any market pullbacks.

Investors are particularly mindful of how lower interest rates can reduce operating costs and enhance profitability for credit-dependent companies, a factor that provides a supportive backdrop for further market advancements. While September has historically been a challenging month for U.S. equities, the market has managed to defy this trend with positive performance thus far.

However, individual stock performance varied, with notable movements including fertility benefits management firm Progyny plunging 33% upon a client's decision to terminate its services agreement.

In conclusion, the convergence of the Federal Reserve's rate cut, optimistic economic forecasts, and robust technical indicators have propelled the Dow and S&P 500 to new historic heights. Market participants remain optimistic, but also cautious, watching key technical levels and future Fed actions that will likely influence the direction of the stock market in the coming months.