Stocks Rally and Treasury Yields Fall as Federal Reserve Signals Potential Interest Rate Cuts
Stocks rallied and Treasury yields fell sharply after the Federal Reserve indicated that the cuts to interest rates Wall Street craves so much may be coming next year. The Dow jumped to a record high close above 37,000 points, while broader indexes also rose. The S&P 500 climbed 1.4 percent and the Nasdaq composite also added 1.4 percent.
Positive Market Reaction
Wall Street has been mostly charging higher since October, largely on hopes that cuts to interest rates are on the way. Rate cuts can relax pressure on the economy by lowering borrowing costs, and they can goose prices for all kinds of investments.
Wednesday’s Market Performance
- The S&P 500 rose 63.39 points, or 1.4 percent, to 4,707.09.
- The Dow Jones Industrial Average rose 512.30 points, or 1.4 percent, to 37,090.24.
- The Nasdaq composite rose 200.57 points, or 1.4 percent, to 14,733.96.
- The Russell 2000 index of smaller companies rose 66.24 points, or 3.5 percent to 1,947.51.
Year-to-Date Performance
As of now, the S&P 500 is up 102.72 points, or 2.2 percent for the year. The Dow has gained 842.37 points, or 2.3 percent, while the Nasdaq has increased by 329.99 points, or 2.3 percent. The Russell 2000 has shown the strongest performance, up 66.69 points, or 3.5 percent.
Looking at the year-to-date figures, the S&P 500 has gained 867.59 points, or 22.6 percent. The Dow has surged by 3,942.99 points, or 11.9 percent, and the Nasdaq has skyrocketed by 4,267.48 points, or 40.8 percent. The Russell 2000 has also seen significant growth, up by 186.26 points, or 10.6 percent.
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