In a surprising turn of events, the U.S. stock market saw a significant surge, with the Dow Jones Industrial Average reaching a record close for the first time in nearly two years. This uptick in the market followed the Federal Reserve’s decision to maintain steady interest rates and outline a new trajectory for rates in 2024.
- The Dow Jones Industrial Average closed up 512.30 points, or 1.4%.
- The S&P 500 ended 63.39 points higher, or 1.37%.
- The Nasdaq Composite finished 200.57 points higher, or 1.38%.
Federal Reserve Chairman Jerome Powell announced that interest rates have likely peaked in this economic cycle, which brought about a sense of optimism among investors. The Dow Jones Industrial Average soared past the 37,000 mark, marking a historic moment, and all three major indexes experienced gains of over 1.3%.
The Federal Reserve’s plan for potential rate cuts in 2024, as indicated by the new “dot plot,” suggests a growing consensus for three 25-basis-point rate cuts in the coming year. Powell emphasized that while the central bank believes it is near the peak in policy rates, close attention will be paid to inflation data, focusing on avoiding excessively high rates for an extended period.
This development has sparked discussions among economists and investors about the future direction of the economy, inflation concerns, and the impact of central bank policies on the financial landscape……..[read more]
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