US markets soared higher on Wednesday afternoon following the Federal Reserve’s final policy decision of the year.
The Dow rose 1.4%, closing at 37,090.24 and blazing past its previous record high of 36,799.65, reached nearly two years ago.
The S&P 500 was up 1.4% and the Nasdaq also gained 1.4% as Wall Street celebrated the US central bank’s announcement that it would keep interest rates steady after almost two years of aggressive rate hikes — and that it expects three rate cuts in 2024.
Wednesday’s stock surge sent the Dow’s year-to-date gains to about 12%. The S&P 500 is also about 2% from a record high and is up 22.6% so far in 2023. The tech-heavy Nasdaq Composite has soared more than 40% so far this year.
“The major takeaway from the December policy meeting is that the Federal Reserve is forecasting a soft landing, full employment and intends to reduce its federal funds policy rate by at least 75 basis points in 2024 to support the ongoing business expansions,” wrote Joseph Brusuelas, chief economist of account firm RSM, in a note Wednesday.
“From our vantage point that is about the best holiday gift a central banker can bestow upon the investment community, policymakers and the public,” he wrote.
The post “Dow surges to new record as Fed signals three rate cuts in 2024” first appeared on CNN