Surprising view
Interest rate prospects boost Dow
December 13, 2023, 11:07 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The Fed could cut interest rates next year. A reason for joy for stock market investors. And how much the perspective inspires investors can be seen above all in the best-known Wall Street index. But other indices are also making jumps.
There is a prospect of significantly falling key interest rates Dow Jones Industrial pushed to a record high. The best-known Wall Street index also surpassed the 37,000 point hurdle for the first time and ultimately rose by 1.40 percent 37,090.24 meters from the day. Since its rally after the interim low at the end of October, the Dow has now gained just over 14 percent. There has been an increase of almost 12 percent since the beginning of the year.
The market breadth S&P 500 rose by 1.37 percent 4707.09 points to. The technology-heavy one Nasdaq 100 rose by 1.27 percent 16,562.37 meters. These two indices have also risen sharply in the course of the current stock market rally and are now just below their highs.
As expected, the US Federal Reserve left key interest rates unchanged in a range of 5.25 to 5.50 percent. For 2024, however, the monetary authorities in Washington expect more and more significant interest rate cuts than before. They now assume an average key interest rate of 4.6 percent. In September they had assumed an average of 5.1 percent. This now suggests around three interest rate cuts in 2024 with a total volume of 0.75 percentage points.
“The Fed is seen as a fairly conservative institution that weighs the impact of what it says,” said ING chief economist James Knightley, calling the Fed signals a “surprising change in outlook.”