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US Stocks Extend Record High Streak on Bets of 2024 Interest Rate Cuts

© AP Photo / John MinchilloA U.S. flag waves outside the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. Stocks are drifting between small gains and losses in the early going on Wall Street Tuesday, May 3, 2022 as investors await Wednesday's decision by the Federal Reserve on interest rates. The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high.
A U.S. flag waves outside the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. Stocks are drifting between small gains and losses in the early going on Wall Street Tuesday, May 3, 2022 as investors await Wednesday's decision by the Federal Reserve on interest rates. The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high. - Sputnik International, 1920, 27.12.2023
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NEW YORK (Sputnik) - US stocks extended their record high streak on Wednesday, with the Dow Jones Industrial Average headed for an all-time high closing as investors piled into US stocks on bets that the Federal Reserve would slash interest rates in the coming year.
With an hour to settlement, the Dow, which serves as Wall Street’s broadest equities indicator with stocks of 30 large US corporations, was up almost 22 points, or 0.1%, at 37,567, after a session peak at 37,684. At its current momentum, the index looks set to rewrite its December 19 record high closing of 37,558.
The S&P 500 Index, which represents the top 500 US stocks, was near flat at 4,773, after reaching a record peak of 4,785 during the session.
The Nasdaq Composite Index, which comprises marquee names in technology such as Google, Amazon, Apple and Netflix, was up 7 points, or 0.1%, at 15,080.52, after an all-time peak at 15,114.
Stocks extended their gains on Wednesday after the US Treasury Department sold $58 billion in 5-year notes, prompting a further pullback in benchmark bond yields.
Yields have plummeted while equities went the other way on signs that inflation could reach the Fed’s 2% target sometime in 2024.
A U.S. flag waves outside the New York Stock Exchange, Monday, Jan. 24, 2022, in New York. Stocks are drifting between small gains and losses in the early going on Wall Street Tuesday, May 3, 2022 as investors await Wednesday's decision by the Federal Reserve on interest rates. The Fed is expected to raise its benchmark rate by twice the usual amount this week as it steps up its fight against inflation, which is at a four-decade high. - Sputnik International, 1920, 13.12.2023
Economy
Federal Reserve Leaves US Interest Rates Unchanged, Sets Stage for Three Cuts in 2024
A US inflation indicator closely followed by the Fed grew 2.6% in the year to November, below Wall Street's forecast and beneath the key 3% mark that suggested a greater likelihood of the central bank cutting interest rates significantly next year.
Some analysts worry the market may have gotten ahead of itself.
"The stock market is too optimistic about the quantity of rate cuts expected in 2024, and we may be borrowing some of 2024’s gains now as the year-end rally continues, because we don’t expect to see as many rate cuts as the market is currently predicting," Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, said in comments carried by MarketWatch.
Landsberg said his firm expected rate cuts no earlier than July and only three at the most for the year "unless something unexpected happens in the economy."
US GDP grew at 4.9% for the third quarter of this year, lagging forecasts by Wall Street’s analyst community, which targeted a growth of 5.2%.
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