Categories: Market News

Stocks Soar to Unprecedented Levels Following Fed’s Rate Decision

US stock indexes reached record highs on Wednesday after the Federal Reserve opted to keep interest rates steady and reaffirmed its forecast of three rate cuts for the year ahead.

The S&P 500 (^GSPC) climbed 0.8%, closing above 5,200 for the first time at 5,224.62. Similarly, the Dow Jones Industrial Average (^DJI) rose about 1% to a record close of 39,512. The Nasdaq Composite (^IXIC), dominated by tech stocks, led the gains with a more than 1% increase, ending the day at a new peak of 16,369.

All three major indices bounced back from slight declines before the Fed’s decision.

In addition to its policy statement, the Fed released updated economic projections in its Summary of Economic Projections (SEP), including its “dot plot” illustrating policymakers’ anticipated future interest rate paths.

Fed officials foresee the fed funds rate dropping to 4.6% by the end of 2024, indicating a potential 0.75% reduction this year, consistent with market expectations.

Bond markets saw limited movement in response, with yields on the 10-year Treasury (^TNX) edging slightly lower to around 4.28% following a notable increase over the past two weeks.

Overall, the market’s reaction to the Fed meeting highlighted a broadening participation in the market rally, as evidenced by the nearly 2% surge in the small-cap benchmark index (^RUT) and gains of over 1% in six of the 11 S&P 500 sectors.

ABC Trader

Recent Posts

Dollar, Bonds, and the Elusive Market Rally

Treasury Yields and Dollar Levels Present Challenges for Stock Market Recovery Stocks started the holiday-shortened…

1 hour ago

Will the Dow Join the Santa Claus Rally?

U.S. Stocks Close the Week with Losses Despite Friday Rally U.S. stocks ended the week…

1 day ago

$275 Profit in Real-Time: Mastering the Sonic System

Today, we have an important task to kick off the trading day: rolling over our…

2 days ago

Fast Profits: Mastering Double System Trading

Hello, traders! Today is Thursday, December 19th, and I’m excited to share insights on a…

4 days ago

Elite Traders’ Secret Tactics for 2025

As we enter 2025, now is the perfect time to sharpen your trading strategies and…

4 days ago

12 Trades in 2 Hours: Sonic System in Action

Today, the market is experiencing a significant sell-off. Let’s dive into the current situation and…

5 days ago