Friday, December 15, 2023

US stocks: Lower-rate wagers lead to the Dow Jones' second consecutive record close

 In New York: The optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve helped US stocks finish stronger on Thursday, with the Dow Jones Industrial Average achieving its second consecutive record high close.

Apple closed up 0.08% after reaching a intraday record high and losing some of its gains.

Tesla shares flooded 4.9%, with about $40 billion worth evolving hands. The next most traded company, Nvidia, had a turnover that was more than double itss. The major chipmaker saw a gain of 0.5 percent.

This year's underperformers also saw increases. Six of the 11 S&P 500 sector indexes finished higher, with energy rising 2.94 percent and real estate rising 2.62 percent.

In the end, the S&P 500 gained 0.26 percent to 4,719.55 points. It is still less than 2% lower than when it reached its record high in January 2022.

The Dow Jones Industrial Average increased by 0.43 percent to 37,248.55 points, while the Nasdaq Composite Index increased by 0.19 percent to 14,761.56 points.

17.1 billion shares were traded on US exchanges, an unusually high volume compared to the previous 20 sessions' average of 11.1 billion shares.

The PHLX semiconductor index rose by 2.7% to a record high at the close. Additionally, the Russell Index of smaller businesses rose by approximately 2.7%.

As was to be expected, the Federal Reserve kept interest rates the same on Wednesday. Chair Jerome Powell said that the historic tightening of monetary policy was likely over because inflation is falling faster than expected and talks about cutting borrowing costs are coming "into view."

Ten-year Treasury yields were closely watched by investors after breaking below 4 percent for the first time since early August in response to the Fed's statement. Last time, they were down 3.94 percent.

"The market by any measure and any metric is overbought and has been overbought," stated Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina. "A consolidation or a pause has been expected, especially after yesterday's surge."

As investors weigh the economic outlook, she added, "While the market celebrates lower rates, it can question why yields are below 4%."

Adobe fell 6.35% after the Photoshop producer conjecture yearly and quarterly income underneath gauges.

The Commerce Department reported on Thursday that US retail sales unexpectedly increased in November as the holiday shopping season got off to a strong start, easing concerns of a recession even further.

In the S&P 500, rising issues outnumbered falling ones by a ratio of 1.9 to 1.

There were 96 new highs and no new lows in the S&P 500; There were 259 new highs and 64 new lows on the Nasdaq.

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