Stocks rose on Thursday, hitting record highs and building on the huge market rally following the decisive victory of president-elect Donald Trump, as traders weighed the latest rate cut from the Federal Reserve.

The S&P 500 gained 0.7%. The Nasdaq Composite advanced 1.51%. The Dow Jones Industrial Average was little changed. The three major averages hit intraday record highs during the session.

The gains built on a surge in stocks Wednesday after Trump's win, including a 1,500 gain for the Dow. The S&P 500 jumped 2.53% for its best post-election day in history.

The bond market has also been volatile, with Treasury yields falling Thursday after spiking in the previous session.

Those big swings were the backdrop for the Federal Reserve's interest rate decision and Chair Jerome Powell's subsequent press conference Thursday afternoon. The central bank's 0.25 percentage point cut was widely expected, but the move was smaller than September's half-point cut.

Powell said the Fed was "feeling good" about the state of the economy, and the central bank seems likely to stick to the small moves going forward.

"The balance of risks gives the Fed ample room to lower the Fed Funds rate well into 2025. Markets should not expect supersized rate cuts unless the economy turns south and doesn't look at all likely for a while," said Jamie Cox, managing partner for Harris Financial Group.

Wall Street generally expects that the second Trump administration will be good for risk assets like stocks, thanks in part to his proposed tax cuts. However, the prospect of continued large government deficits and higher tariffs has raised some worries about a rebound in inflation.

Until the extent and impact of Trump's plans become clear, investors can expect volatile trading and a stock market that is moving generally higher, said Tony Roth, CIO at Wilmington Trust.

"At some point, given the stretched multiples on equities and the higher income levels of bonds, we could very much have a very compressed equity risk premium and little opportunity left in the equity market. We're not there yet. I think that we've got six months before we have to have a serious conversation about being there," Roth said.

Big Tech stocks moved higher on Thursday to bolster the market, with Apple and Nvidia gaining 2.3% and 1.9%, respectively. Meta Platforms rose 3.5%.

Financial stocks, which surged on Wednesday, gave back some of those gains on Thursday. Shares of JPMorgan Chase fell 4.3% and American Express dipped 3%, weighing on the Dow.