Wall Street romped to records Thursday as jubilation swept markets worldwide one day after the U.S. Federal Reserve's big cut to interest rates.

The S&P 500 jumped 1.7% for one of its best days of the year and topped its last all-time high set in July. The Dow Jones Industrial Average leaped 522 points, or 1.3%, to beat its own record set on Monday, and the Nasdaq composite led the market with a 2.5% spurt.

The rally was widespread, and Darden Restaurants, the company behind Olive Garden and Ruth's Chris, led the way in the S&P 500 with a jump of 8.3%. It said sales trends have been improving since a sharp step down in July, and it announced a delivery partnership with Uber.

Nvidia, meanwhile, barreled 4% higher and was one of the strongest forces lifting the S&P 500. Lower interest rates weaken criticism by a bit that its shares and those of other influential Big Tech companies look too expensive following the frenzy around artificial-intelligence technology.

Wall Street's gains followed rallies for markets across Europe and Asia after the Federal Reserve delivered the first cut to interest rates in more than four years late on Wednesday.

It was a momentous move, closing the door on a run where the Fed kept its main interest rate at a two-decade high in hopes of slowing the U.S. economy enough to stamp out high inflation. Now that inflation has come down from its peak two summers ago, Chairman Jerome Powell said the Fed can focus more on keeping the job market solid and the economy out of a recession.

Wall Street's initial reaction to Wednesday's cut was a yawn, after markets had run up for months on expectations for coming reductions to rates. Stocks ended up edging lower after swinging a few times.

"Yet we come in today and have a reversal of the reversal," said Jonathan Krinsky, chief market technician at BTIG. He said he did not anticipate such a big jump for stocks on Thursday.

Some analysts said the market could be relieved that the Fed's Powell was able to thread the needle in his press conference and suggest the deeper-than-usual cut was just a recalibration of policy and not an urgent move it had to take to prevent a recession.

That bolstered hopes the Federal Reserve can successfully walk its tightrope and get inflation down to its 2% target without a recession. So too did a couple reports on the economy released Thursday. One showed fewer workers applied for unemployment benefits last week, another signal that layoffs across the country remain low.

Lower interest rates help financial markets in two big ways. They ease the brakes off the economy by making it easier for U.S. households and businesses to borrow money. They also give a boost to prices of all kinds of investments, from gold to bonds to cryptocurrencies. Bitcoin rose above $63,000 Thursday, up from about $27,000 a year ago.

An adage suggests investors should not "fight the Fed" and should instead ride the rising tide when the central bank is cutting interest rates. Wall Street was certainly doing that Thursday. But this economic cycle has thrown out conventional wisdom repeatedly after the COVID-19 pandemic created an instant recession that gave way to the worst inflation in generations.

Wall Street is worried that inflation could remain tougher to fully subdue than in the past. And while lower rates can help goose the economy, they can also give inflation more fuel.

The upcoming U.S. presidential election could also keep uncertainty reigning in the market. A fear is that both the Democrats and Republicans could push for policies that add to the U.S. government's debt, which could keep upward pressure on interest rates regardless of the Fed's moves.

Indexes climbed even more across the Atlantic and Pacific oceans. They rose 2.3% in France, 2.1% in Japan and 2% in Hong Kong.

The FTSE 100 added 0.9% in London after the Bank of England kept interest rates there on hold. The next big move for a central bank arrives Friday, when the Bank of Japan will announce its latest decision on interest rates.