Stock market news today: Dow hits record high as stocks cap longest weekly winning streak since 2017

Stock market news today – Fueled by a more cautious stance from the Federal Reserve, the Dow Jones achieved a record high, marking the culmination of the longest weekly winning streak for US stocks since 2017.

The Dow Jones Industrial Average (^DJI) saw a modest increase of approximately 0.2%, or around 60 points, securing yet another record finish for the blue-chip index. Meanwhile, the S&P 500 (^GSPC) remained largely unchanged, and the Nasdaq Composite (^IXIC), known for its tech-heavy composition, experienced a gain of roughly 0.4%.

The positive market sentiment followed the Federal Reserve’s shift in tone during the week. The central bank indicated a likelihood of more rate cuts in 2024 than initially predicted, while acknowledging the success of its anti-inflation measures. This prompted a surge in US stocks, with the Dow reaching a historic high and major indexes enjoying a seventh consecutive week of gains.

However, some analysts caution that the market may be getting ahead of itself in interpreting the Fed’s intentions. New York Fed President John Williams, in an interview with CNBC, deemed discussions of rate cuts as “premature.”

In addition to the Fed’s influence, other factors contributed to market dynamics. A change in leadership at the Hong Kong Exchanges and Clearing (HKEX), coupled with lackluster Chinese economic data, contributed to a decline in markets. Alibaba’s decision to reduce its stake in electric vehicle maker Xpeng also played a role in the market’s response.

Away from the stock market, oil experienced a positive turn, ending its seven-week losing streak. West Texas Intermediate (CL=F) settled just below $72 per barrel, while Brent crude futures (BZ=F) traded around $77 per barrel. The oil price surge was attributed to a weakened dollar in the market, resulting from expectations of rate cuts by the Federal Reserve.

The week also witnessed gold finishing above $2,000 an ounce after reaching a record earlier in the week.

Looking ahead, the last full trading week of the year is anticipated, with investors reflecting on the dovish take from the Fed and its potential impact on rate cuts. Fresh inflation data, particularly the PCE price index, is scheduled for release, offering insights into the effectiveness of the central bank’s efforts to curb inflation.

On the corporate earnings front, companies such as Nike (NKE), FedEx (FDX), and General Mills (GIS) will provide insights into the state of the economy and consumer trends heading into 2024.

In summary, the record-setting week for US stocks, influenced by the Federal Reserve’s tone and other global economic factors, sets the stage for a significant closing chapter in the financial markets for the year. As the market navigates uncertainties, investors eagerly await key economic indicators and corporate performances to guide their decisions.

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