The Dow Jones New York Stock Exchange Index closed positive on Monday (Dec. 18), with the market still supported by expectations that the Federal Reserve (Fed) will begin cutting interest rates next year. While investors keep an eye on US economic data this week. Including the November Personal Consumption Expenditures (PCE) price index, which is a measure of inflation that the Fed cares about.
The Dow Jones Industrial Average closed at 37,306.02 points, up 0.86 points or +0.002%, the S&P500 Index closed at 4,740.56 points, up 21.37 points or +0.45%, and the Nasdaq Index closed at 14,904.81 points, up 90.89 points, +0.61%.
Tom Henlin, analyst at US Bank Wealth Management, said: “The market continues to move in line with expectations that the Fed will start cutting interest rates next year. Economic data that has been disclosed in the past Whether it is the inflation number consumer spending and the labor market They weren’t too bad or too hot. The economy is in a suitable condition like this, which is still the supporting factor for this forecast.”
In the past week The Dow rose 2.9%, the S&P 500 rose 2.5% and the Nasdaq rose 2.8%. All three major indexes rose for a seventh straight week, their longest since 2017, driven by a trend that The Fed will lower interest rates next year.
This is despite the fact that many Fed officials These include Chicago Fed President Austan Goolsby and New York Fed President John Williams. Has come out to express negative opinions about the trend of reducing interest rates. But investors still expect the Fed to begin cutting interest rates at its March meeting. 2024, with the latest CME Group’s FedWatch Tool indicating that investors gave 63.4% weight in expecting the Fed to cut interest rates by 0.25% at its March meeting. 2567
Among the 11 stocks included in the S&P 500 Index, communications services stocks posted the strongest gains. These included Meta Platforms shares up 2.9%, Netflix shares up 3%, Spotify shares up 0.4%, and Alphabet shares up 2.4%.
Energy stocks rebound after WTI oil price surges above $72/barrel. After Yemen’s Houthi rebels attacked several merchant ships in the Red Sea. This has raised concerns about the supply of oil in the market.
Shares of United States Steel (US Steel), a major U.S. steel producer, soared 26.1% to close at their highest in more than 12 years, after Nippon Steel, Japan’s largest steel producer. Announces acquisition of US Steel for $14.1 billion The company formed after the merger will become the third largest steel producer in the world and make Nippon Steel has a global crude steel production capacity of approximately 86 million tonnes per annum, paving the way to reach its 100 million tonnes per annum target.
Apple shares dropped 0.85% after it was reported that Chinese government agencies and companies have issued orders to employees to stop bringing iPhones and other mobile devices from foreign companies. to use in the workplace
Investors keep an eye on important US economic data this week. This includes Nov. second-hand home sales, Q3/2023 gross domestic product, Nov. personal consumption expenditures (PCE) price index, Nov. durable goods orders. September and new home sales in November
2023-12-18 23:37:22
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