Today’s Big Story

S&P 500 Surges to Record High

The stock market reacts after Fed delivers a big cut to rates

You might want to check your 401(k) balance. You’re likely to see a nice return. Because the S&P 500 surged to a record high close on Thursday—a day after the Federal Reserve cut interest rates by 50 basis points and indicated more rate cuts were on the horizon.

The blue chip Dow Jones Industrial Average also registered a record closing high, ending the session above 42,000 for the first time. According to Reuters, a better-than-expected jobless claims data further stoked global risk appetite. President Biden said on Thursday that the Federal Reserve's interest rate cut signals the nation had entered a “new phase” during a speech that touted his economic record. The president, who rarely speaks publicly about Fed policy decisions, pointed to lower rates as proof that the inflation burst that tarnished his economic legacy is all but over.

The momentous move by the Fed helps financial markets in two big ways. It eases the brakes off the economy, which has been slowing under the weight of higher rates, and it gives a boost to prices for all kinds of investments. Besides stocks, gold and bond prices had already rallied in recent months on expectations that cuts to rates were coming.

The Associated Press reports that Wall Street’s reactions were relatively muted despite the Fed’s 180-degree turn on rate policy. It marked the first cut to the federal funds rate in over four years, and it closed the door on a stretch where the Fed kept rates at a two-decade high to slow the economy enough to stifle the worst inflation in generations.

CNBC says that Dow futures flickered near the flatline Thursday night. The three major averages are on pace for weekly gains, with the S&P 500 up nearly 1.6% through Thursday’s close. The Dow is toting a 1.5% jump on the week, while the Nasdaq is outperforming with a 1.9% advance. What does this mean for the near future? MarketWatch ran back the tape on previous times this has happened and found that since 1990, the Fed has cut rates seven times while the S&P 500 was at or near (within 1%) of an all-time high. In those instances, stocks tended to rise on decision day, but six months later “the performance was mixed.” So, I guess, we’ll just have to wait and see.

Israel Bombards Hezbollah As Group’s Leader Vows Retaliation

And now Washington’s grip on the crisis appears more tenuous than ever

The Israeli military carried out dozens of airstrikes against the Lebanese militant group Hezbollah on Thursday—one of the most intense waves of bombardment this year. The strikes came hours after Hezbollah’s leader vowed that “retribution will come” after explosives hidden in Hezbollah’s pagers and walkie-talkies killed 37 and injured thousands. He accused Israel of breaking “all conventions and laws” and said that it would “face just retribution and a bitter reckoning.”

The detonation of the devices this week coincided with U.S. Secretary of State Antony Blinken’s trip to Egypt, where he urged “all parties” to avoid any steps that could “further escalate the conflict that we’re trying to resolve.” However, the Washington Post reports, the clash is now straining America’s effort to prevent a wider regional war.

As the world urged against further escalation after months of devastating war with Hamas in the Gaza Strip, Israel indicated its focus had shifted to its northern border with Lebanon, declaring a “new phase” to its simmering monthslong conflict with Hezbollah. Israel Defense Minister Yoav Gallant spoke to this “new phase” in a video posted to X, noting that it will bring both risk and benefits. He warned that Hezbollah will pay an “increasing price” as time goes on.

Shohei Ohtani Becomes First to Reach 50/50 Club

The Japanese MLB star has 51 stolen bases and 51 home runs on the season

In the first season of a record-setting contract, without throwing a single pitch, Shohei Ohtani found a new way to amaze. The Los Angeles Dodgers designated hitter hit his 50th home run and stole his 50th base of the season Thursday, becoming the first MLB player to reach both benchmarks in the same season.

“While Shohei Ohtani has been a groundbreaking player for many years, his latest feat as the first 50/50 player in the history of Major League Baseball reflects not just his amazing power-and-speed talent, but his character, his drive, and his commitment to all-around excellence,” Commissioner Rob Manfred said in a statement. His 10 RBIs also set a new franchise record and helped Los Angeles secure its 12th straight postseason berth.

According to ESPN, Ohtani remained stoic as he rounded the bases after the historic homer, but he cracked moments later, while making his way through the usual parade of dugout high-fives. He smiled sheepishly, gritted his teeth, rhythmically shrugged his shoulders, as if to convey amazement—embarrassment, even—by his unrelenting dominance. “To be honest, I’m the one probably most surprised,” Ohtani said through an interpreter in a television interview. “I have no idea where this came from, but I'm glad that I performed well today.”

It’s Time for Oktoberfest

Do you know what kind of beer was served at the first one?

While you might be able to celebrate a version of this traditional Bavarian festival at your local bar, the ultimate party is where it all originated—and you won’t find a true match anywhere else. This year, Munich’s Oktoberfest kicks off this weekend and will run until October 6, begging the question: Why is it called Oktoberfest?

The answer is simple—the event honors the October 12, 1810 wedding between Prince Ludwig and Princess Therese. But practically speaking, the weather in Germany is not exactly desirable in October—the days are shorter, which translates to less party time and fewer people in attendance. This year, security has tightened after a deadly knife attack last month in western Germany, and officials are warning revelers to expect longer lines to enter as metal detectors are deployed for the first time in the Bavarian beer festival’s 189-year history.

Of course, the star of any Oktoberfest is the beer. And while Märzen has reigned as Germany's official brew for over a century, The Takeout points out that it wasn’t the first beer of Oktoberfest. “In the early 1800s, brewing methods were still archaic, relying on fire to heat the malt, which resulted in a dark and heavy beer called dunkel.” It used to be produced with dark brown malt. Now made with a mix of malts, including Munich and black malt, dunkel is characterized by caramel, chocolate, and toasted bread flavors. Dunkel means "dark" in German—this refers to its dark color and strong taste. Though dunkel-style beer isn't a popular choice for the American palate, it isn't difficult to spot in your local liquor store.

A Weekend Pairing

‘Monsters’ + a Cable Car Cocktail

Monsters: The Lyle And Erik Menendez Story is the second season of Ryan Murphy and Ian Brennan’s anthology series Monster on Netflix, which started by examining serial killer Jeffrey Dahmer. This year, they focus on the sensational case of parental murder that took the country by storm in the 1990s.

While it's a legendary case, it's been a while and most of us can't recall the details. Decider says it's a must-stream show, taking "a pretty familiar story and making it compelling by shifting the narrative slightly." Several critics are also praising the cast's excellent performances: Javier Bardem and Chloë Sevigny play the parents while Nicholas Alexander Chavez and Cooper Koch play the brothers. Fans of true crime will no doubt get sucked into the breakdown of the crime in question, the allegations of abuse that motivated the murder and the subsequent sentencing.

A plan isn’t necessary.