Share this @internewscast.com

The Dow Jones Industrial Average jumped to a record Wednesday as the Federal Reserve signaled it would cut rates several times next year, satisfying investors who hoped the central bank would finally start to acknowledge the slowing trend of inflation with a less-aggressive monetary stance.

The 30-stock Dow added 512.30 points, or 1.40%, to close at 37,090.24. This marks the first time the benchmark closed above the 37,000 mark — exceeding a previous record set in January 2022. At its session high, the Dow touched 37,094.85.

The S&P 500 jumped 1.37% to finish the session at 4,707.09 — crossing 4,700 for the first time since January 2022 — while the Nasdaq Composite climbed 1.38%. to 14,733.96. All three major averages hit fresh 52-week highs.

The central bank held the benchmark overnight borrowing rate steady in the 5.25% to 5.5% range as expected, but more importantly it forecast three rate cuts in 2024, which were more than it had previously indicated. Investors have been increasingly hoping for the Fed to give a clearer signal that it would start cutting rates next year with recent inflation data easing.

The Fed’s meeting statement acknowledged that inflation “has eased” over the past year and the central bank formally lowered its inflation forecast for 2024, seeing a 2.4% rate down from 2.6%.

“The Fed has given the market an early holiday gift today when, finally, for the first time, they have commented positively about inflation,” said Gina Bolvin, president of Bolvin Wealth Management Group. “It appears that the Fed is moving in the market’s direction, rather than the market moving towards the Fed. The Santa Claus rally may continue.”

The Dow retreated from previous record levels in early 2022 as the Fed embarked on its policy tightening campaign to fend off inflation. Last year, the 30-stock benchmark dropped 8.8% — its biggest annual decline since 2008.

Since the start of the fourth quarter however, the Dow has surged more than 10% as hope of easier policy grew.

The gains Wednesday brought the Dow’s year-to-date rise to 11.9%. The broader market has seen even bigger gains, with the S&P 500 up 22.6% so far in 2023. The Nasdaq Composite is up 40.8% year-to-date.

The market got more encouraging inflation data earlier on Monday, with the producer price index unchanged in November. That follows Tuesday’s consumer price index release, which showed prices slowing to a 3.1% annual rate last month.

The 10-year Treasury yield, a benchmark for mortgage rates and other loans, dropped to 4.03% following the Fed’s rate forecast release, the lowest levels since August.

Shares of Bank of America and Wells Fargo, banks that stand to benefit if the Fed orchestrates a so-called soft landing, jumped 4% and nearly 3% Wednesday, respectively. Home Depot, whose sales could be boosted by a revival in the housing market, gained 3%.

Share this @internewscast.com
You May Also Like
Oasis’ Manchester homecoming has locals fearing fan behavior — and they want a dress code

Locals Concerned Over Fan Conduct During Oasis’ Manchester Return, Suggest Dress Code

Concerned residents are calling for a ‘dress code’ and a ‘buffer zone’…
Portrait of Maj-Gen Mikhail Gudkov in military uniform.

Kursk Missile Strikes: Ukrainian Attack Eliminates Russia’s Naval Deputy Chief Amidst Invasion Plans

UKRAINE killed the deputy commander of Russia’s navy who was plotting a…
Iran nuclear program set back 2 years after US strikes: Pentagon

U.S. Strikes Delay Iran’s Nuclear Program by 2 Years: Pentagon Reports

The “bunker busting” bombs released on Iranian nuclear sites by U.S. forces…
Accused Minnesota lawmaker slayer asks for special accommodations during court appearance

Minnesota Lawmaker Murder Suspect Requests Special Court Accommodations

The man accused of shooting two Minnesota lawmakers and their spouses last…
Good Samaritan rescues 9-year-old kidnapped along Jacksonville road, police say

Police Report: Kind Stranger Saves 9-Year-Old Kidnapped on Jacksonville Road

Authorities reported that 22-year-old Mikaya Williams forced the child into her car…
Supreme Court will take up a new case about which school sports teams transgender students can join

Supreme Court to Consider Case on Transgender Student Participation in School Sports Teams

The Supreme Court announced on Thursday its decision to review a case…
Special Ed Teacher Indicted on 52 Abuse Charges

Special Education Teacher Faces 52 Charges of Abuse

Christina Formella, a former Downers Grove South High School special education teacher,…
What to know about buying electric vehicles after the federal tax incentives end

Key Points to Consider When Purchasing Electric Cars After the Federal Tax Credits Expire

The massive tax and spending cut bill that Congress passed Thursday ends…
City of Atlantic Beach warns about permit email scam

Atlantic Beach City Issues Alert on Fraudulent Permit Email Scam

Atlantic Beach Police are investigating an email phishing scam where the senders…
U.S. Contractors Allegedly Fire on Gaza Aid Crowds

Allegations of U.S. Contractors Opening Fire on Crowds Awaiting Gaza Aid

American contractors guarding aid distribution sites in Gaza have used live ammunition,…
Exclusive: New 'Bachelor In Paradise' promo highlights couples and some drama! 

Exclusive: Fresh ‘Bachelor In Paradise’ Teaser Reveals Romantic Pairings and a Bit of Drama!

We’re getting more hints as to what we can expect on season…
Lisa Henderson, struck by lightning, in interview.

19-Year-Old Girl Hit by Lightning While in Bed – Common Device Use Increased Her Risk

A TEEN girl has revealed how she was struck by lightning while…