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Traders work on the floor of the New York Stock Exchange during morning trading on December 13, 2023 in New York.
Michael M. Santiago | Getty Images
U.S. stock futures climbed Wednesday night after the Federal Reserve signaled more rate cuts through 2024, and the Dow Jones Industrial Average closed at an all-time high.
Future subject to 30-share Dow plus 90 points, or 0.2%. S&P 500 futures and Nasdaq 100 futures received 0.3% and 0.4%, respectively.
The Federal Open Market Committee kept interest rates unchanged between 5.25% and 5.5%, in line with Wall Street expectations. Market sentiment was buoyed after lawmakers approved three rate cuts next year.
In normal trading, the Dow jumped 1.4% during main trading to close at 37,090.24. It was the first time the 30-stock index closed above 37,000 and broke its previous high close since January 2022. S&P 500 added 1.37%, finishing above 4,700 for the first time since January 2022. Nasdaq Composite gain 1.38%. The three major averages all rose to new 52-week highs.
The central bank’s statement is a “tip of the iceberg of the fact that we are on a path to a weak point – and they will probably be able to relax policy more than market expectations in 2024,” said Ross Mayfield, investment strategist. researcher at Baird.
Mayfield thinks the market rally from six weeks ago and following Powell’s comments has been “vindicated.”
“We’re shopping for perfection,” Mayfield said. “We may be at a point where the risks to the bottom are diminishing in 2024, but a soft landing is definitely in the cards and today’s Fed announcement helps confirm that.” there is action in the same money.”
In extended trading Wednesday, shares of Adobe reduced by more than 4% after guidance for 2024 revenue and earnings.
Investors will monitor economic data on Thursday. The job application will be released weekly at 8:30am ET. November sales and imports data is also out this morning, as well as the October business sales report.