Markets on Wall Street were positioned to open at record highs Thursday after the Federal Reserve issued a bigger-than-usual interest rate cut intended to fortify a cooling labor market and prevent a recession.

The blue chip index closed above the psychologically significant 42,000 level for the first time ever Thursday.

Apple shares dropped Monday after an analyst warned of weaker iPhone 16 demand. The Fed begins its key two-day policy meeting on Tuesday.

Though the S&P 500 briefly touched a new record, equities were mixed as investors remain split over the Fed's interest rate decision on Wednesday.

Stocks were choppy in the lead-up to today's Federal Reserve policy announcement. While the main indexes made a confident move higher after the central bank cut rates by a half-percentage point, a late-day burst of selling pressure sent them into the red at the close.

The Fed is expected to deliver its first rate cut since 2020 on Wednesday, with markets seeing higher odds for a 50 basis point cut.