US Homebuilder Stocks Surge Following Fed's Major Rate Cut

Optimism grows as reduced borrowing costs are expected to boost home sales, though analysts warn gains may already reflect future rate cuts.

Major U.S. homebuilders like D.R. Horton, Lennar, PulteGroup, and Toll Brothers saw premarket stock increases of roughly 3%.
The Federal Reserve implemented a significant half-percentage-point interest rate cut, aiming to lower mortgage rates and stimulate housing demand.
Home improvement chains Home Depot and Lowe's also experienced a 2% rise in premarket trading.
Skepticism exists among analysts that the recent stock rally may have already priced in the expected rate cuts.
The S&P Composite 1500 Homebuilding Index has outperformed the broader market, rising about 29% this year compared to the S&P 500's 18% gain.