Thrifty Banker
  • Politics
  • Business
  • World
  • Investing
  • Politics
  • Business
  • World
  • Investing

Thrifty Banker

Business

Dow rallies more than 500 points to record, closes above 37,000 for the first time

by December 14, 2023
December 14, 2023
Dow rallies more than 500 points to record, closes above 37,000 for the first time

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%.

This post appeared first on NBC NEWS
0
FacebookTwitterGoogle +Pinterest
previous post
Magnetic Resources NL
next post
Judge pauses Jan. 6 case against Trump amid former president’s appeal to dismiss

Related Posts

Paramount and Skydance inch closer to a merger...

April 30, 2024

United Airlines says FAA cleared it to start...

May 17, 2024

Southwest Airlines pauses corporate hiring, most summer internships...

January 15, 2025

Airbnb bans indoor security cameras for properties listed...

March 12, 2024

Wayfair to open its first large store, as...

May 18, 2024

Microsoft’s Satya Nadella says job cuts have been...

July 26, 2025

Big Mac battle: McDonald’s loses burger trademark for...

June 6, 2024

Sam Bankman-Fried to testify in federal fraud trial,...

October 26, 2023

Federal Reserve again keeps interest rates steady as...

December 16, 2023

Nvidia’s CEO did a Q&A with analysts. What...

March 24, 2025

    Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Popular

    • 1

      ‘This is a life-changing event’: Floridians start an arduous recovery as Idalia keeps thrashing North Carolina

      September 1, 2023
    • 2

      Letter from the CEO: Unlocking the True Value of Electric Royalties Ltd

      March 26, 2025
    • 3

      Waymo offers teen accounts for driverless rides

      July 9, 2025
    • 4

      A GOP operative accused a monastery of voter fraud. Nuns fought back.

      January 3, 2025
    • 5

      Strong Leach Recoveries and Low Impurities

      July 9, 2025
    • 6

      Tesla asks shareholders to vote again on Musk’s $56 billion payout

      April 18, 2024
    • 7

      Eruption of Indonesia’s Mount Lewotobi Laki Laki volcano sends ash 11 miles high

      July 7, 2025

    Categories

    • Business (1,094)
    • Investing (2,148)
    • Politics (2,979)
    • Uncategorized (20)
    • World (3,421)
    • About us
    • Contacts
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: thriftybanker.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 thriftybanker.com | All Rights Reserved