US stocks gained on Thursday, as investors continued to celebrate a dovish shift by the Federal Reserve that helped propel the Dow to a new all-time closing high.
The Dow Jones Industrial Average (^DJI) added about 0.3%, setting the blue-chip index up to build on its record close above 37,000 on Wednesday. The S&P 500 (^GSPC) was up almost 0.6%, while contracts on the tech-heavy Nasdaq Composite (^IXIC) added 0.4%.
The gauges posted fresh 2023 highs in the wake of the Fed’s policy decision, which signaled the Fed is unlikely to hike interest rates further and that it could cut rates three times next year.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
That message surprised and thrilled investors, who welcomed the Fed’s forecast of further cooling in inflation and no sharp rise in unemployment. Bonds rallied alongside stocks, sending the yield on the 10-year Treasury (^TNX) down below 4% on Thursday, for the first time since August.
Meanwhile, oil prices moved up about 1.7% to come further off the five-month low hit earlier this week. West Texas Intermediate (CL=F) futures traded at nearly $71 a barrel, while Brent crude futures (BZ=F) rose toward $76 a barrel.
Eyes are also on central bank decisions elsewhere on Thursday, for signs of a worldwide move to easing. The Bank of England kept its interest rates steady, as did the Swiss National Bank and the European Central Bank, though Norway’s policymakers raised the benchmark rate in a surprise move.
In individual corporates, Adobe (ADBE) shares sank more than 6% in after the software maker’s sales outlook signaled it will have to wait longer than expected for a boost from new AI tools. Adobe also said US antitrust regulators are looking into its cancellation rules for subscriptions.
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Read More:Stocks rise as Fed pivot fuels euphoria
2023-12-14 15:19:52