2023-12-13 23:59:17
The Dow Jones has reached its highest level this Wednesday after the messages from the Federal Reserve (Fed), which have kept interest rates unchanged in their last monetary meeting of the year. In addition, Jerome Powell, the president of the Fed, has opened up about lowering rates in 2024. The markets in the United States have received these words with a rise of 1.40% and that has led the Dow Jones to reach 37,000 points, a level which the selective had never reached. At the close of trading on the New York Stock Exchange, the selective S&P 500 rose 1.37% to 4,707 units. The Nasdaq index, where the large technology companies are listed, grew by 1.38%, to 14,734 integers.
The announcement that the Fed made this Wednesday, after its two-day meeting, and which generated great expectations, has caused euphoria among investors and has resulted in a rise of more than 500 points in the Dow, thus exceeding its previous historical maximum, in January 2022, of 36,800 points. The Federal Reserve will maintain interest rates for the third consecutive time at a current range of 5.25% to 5.5%, and opened the door to making up to three reductions during 2024.
The Federal Open Market Committee (FOMC), the body in charge of deciding the increases, indicated that it will continue to evaluate complementary economic information and its implications for economic policy. But the median of the Fed governors’ forecasts pointed out that rates will be at 4.6% in 2024, (equivalent to a range of 4.5% to 4.75%), to be cut one point in 2025, to 3.6%, and reach 2.9% in 2026.
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“We think we are probably at or near the peak rate of this cycle”Fed Chairman Jerome Powell said at a news conference shortly after the conclusions of the central bank’s final meeting this year were released. Elsewhere, 10-year bond yields fell to 4.024% and US gold futures rose to $2,041 an ounce.
By sectors, Green predominated in all sectors and the greatest gains were for public services (3.72%) and real estate (3.58%).. Among the 30 Dow Jones values, the increases in Walgreens (7.41%) and Home Depot (3.06%) stood out, while the biggest loss was for Verizon (-0.83%). In other markets, Texas oil rose to $69.47 a barrel, and at the close of trading, the dollar was losing ground against the euro, with an exchange rate of 1.0879.
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