Stock market today: After Dow hits unprecedented heights, Wall Street points still higher
Wall Street pointed toward gains one day after a powerful rally sent the Dow Jones Industrial Average to a record high as the Federal Reserve indicated that interest rate cuts are likely next year
Wall Street pointed toward gains early Thursday following a powerful rally that sent the Dow Jones Industrial Average to a record high as the Federal Reserve indicated that interest rate cuts are likely next year.
Futures for the S&P 500 rose more than 0.3% before the bell as did futures for the Dow.
Lower rates can ease pressure on the economy and goose prices for all kinds of investments. Markets have been rallying since October on hopes not only that the Fed's aggressive series of rate hikes were over, but that cuts may be on the way.
The Federal Reserve held its main interest rate steady at a range of 5.25% to 5.50% Wednesday as was widely expected. That’s up from virtually zero early last year. And inflation has retreated sharply from its peak of 9% while the economy has remained solid.
Fed Chair Jerome Powell said Wednesday that the benchmark rate is likely already at or near its peak while acknowledging that inflation remains too high. Powell said Fed officials don’t want to wait too long before cutting the federal funds rate, which is at its highest level since 2001.
“We’re aware of the risk that we would hang on too long” before cutting rates, he said. “We know that’s a risk, and we’re very focused on not making that mistake.”
Like the Fed, the European Central Bank and Bank of England were expected to keep their interest rate policies unchanged, as were the central banks of Norway and Switzerland.
Moderna shares jumped more than 8% in premarket after the drug company announced that its treatment for high-risk
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