The US Nasdaq Composite Index closed at a record high level, and the broader Standard & Poor’s 500 Index rose, as investors evaluated the latest economic data while awaiting the latest announcements by the Federal Reserve (the US Central Bank) regarding monetary policy this year during the current week to evaluate the path… interest rate.
Interest rate reduction
Markets almost completely expect a reduction in borrowing costs tomorrow, Wednesday, at the conclusion of the US Federal Reserve’s two-day monetary policy meeting, with a 95.4% chance of a 25 basis point rate cut, according to the CME Group’s Fed Watch tool.
The Standard & Poor’s 500 Index rose by 23.63 points, or 0.39%, to 6,074.72 points at yesterday’s close. The Nasdaq Composite Index rose by 247.17 points, or 1.24%, to close at 101,73.89 points. The Dow Jones Industrial Average fell by 110 points, or 0.25. % to 43 thousand and 717.48 a point.
The Standard & Poor’s 500 index ended gains that continued for 3 weeks, and the Dow Jones Industrial Average also fell, while the Nasdaq index was able to maintain its gains for the fourth week in a row.
Powell’s statements
Bloomberg quoted Chris Larkin, managing director of trading and investing at eTrade from Morgan Stanley, as saying: “Momentum in the near term may depend on what Federal Reserve Chairman Jerome Powell says after the announcement, and whether retail sales or the expenditure price index… Personal consumption has surprised the market.”
He said that most stock market gains in December historically tend to come in the second half of the month, adding that the Standard & Poor’s 500 index has achieved a positive net return in this period 78% of the time since 1957.
