US markets hit record high; Dow jumps 512 pts on Fed’s 2024 rate cut signals

 

US Markets LIVE, 13 Dec 2023: The US stock market indexes opened marginally higher on Wednesday as investors await the Federal Reserve’s final monetary policy updates of the year.

The Dow Jones Industrial Average (DJIA) opened slightly higher by 23.86 at 36601.80, while the S&P 500 index made a positive opening of 2.5 points, and opened at 4646.20. The Nasdaq Composite index also opened higher by 22.28 points at 14555.68.

 

US Markets Live Updates Today

 

US Markets at 11.10 am. EDT, The US stock market indexes are trading marginally higher. Dow Jones is trading slightly higher by 6.23 points or 0.02 percent at the 36584.17 level, while the S&P 500 is trading positive by 8.50 points or 0.18 percent at 4652.20 levels. The tech-heavy Nasdaq Composite Index is also trading marginally higher by 28.92 points or 0.20 percent at 14562.32 levels. 

 

US Markets News

 

The US stock markets are trading with little changes as investors remained cautious and sidelined ahead of Federal Reserve policy updates. All eyes are on Fed Chair Jerome Powell’s news conference for more clues for potential rate cuts early next year.

Investors are almost certain, that officials will vote to leave interest rates steady in the 5.25% to 5.5% range for a third straight monetary policy meeting. The CME FedWatch Tool indicates that the possibility of rate cuts starting early next year is already priced in the markets. 

However, Powell may opt to push back the early rate cuts, as Treasury yields declined normally. The 10-year Treasury yield has slipped to 4.167% from its peak of 5% in October it was settled at 4.204% on Tuesday.

The fresh Producer Price Index (PPI) inflation data released on Wednesday rose 0.9% annually in November. Economists polled by Reuters had forecast a 1% advance. Meanwhile, on a month-on-month basis, PPI remained unchanged, against a 0.1% increase estimate.

 

US Stocks In News

 

The shares of Tesla dropped more than 1% after US safety regulators said the electric vehicle maker will recall more than 2 million vehicles to fix issues related to the driver assistance system.

Pfizer is trading lower by over 8% and at its lowest point in around a decade as investors reacted negatively to the new guidance. The stock was down about 9% on Tuesday. The company delivered guidance for full-year revenue that was softer than analysts expected

The shares of Roblox gained more than 1.5% after Wells Fargo revised the Overweight rating and set the target price of $49 per share on Wednesday.

 

Crude Oil Prices

 

Crude oil prices rebounded from the day’s low on Wednesday after a sharp fall in the previous session. Both the benchmarks remained around six-month lows on concerns over weaker demand and looser supplies ahead of the latest Federal Reserve meeting.

The data released Tuesday from the American Petroleum Institute (API) indicated that US oil inventories fell by over 2 million barrels last week, more than expected. However, the decrease is not sufficient to offset the several consecutive weeks of strong build.

The US WTI crude trades higher by 1.53 % at $69.66 per barrel while London-based Brent crude oil is marginally down by 1.72% at $74.32 per barrel.

 

Also, read –  US Markets Update: Dow Jones, S&P 500, and Nasdaq Gain after Treasury Yield Dip

Stock Market Prediction Next Week (11- 15 Dec 2023)

 

US Markets Close on 13 Dec

 

The US stock market indexes closed at an all-time high on Wednesday as the Federal kept the interest rates steady and signaled three rate cuts in 2024. On Wednesday, the dovish Fed policy pushed the 10-year Treasury yield lower to 4.025% and boosted the growth stocks. The Dow Jones Industrial Average (DJIA) gained 512.30 points or 1.40% and finished at 37090.24, while the S&P 500 index was also up 63.39 points or 1.37% at closed at 4707.09. The tech-heavy Nasdaq also jumped 200.57 points or 1.38% and settled at 14733.96.

 

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