NEW YORK– Wall Street continued to rise this Thursday, celebrating the new tone adopted by the Federal Reserve on Wednesday, when it announced that it is considering cutting its reference interest rates next year.
The Dow Jones index continued at record levels, with an advance of 0.43%. The S&P 500 gained 0.26% and the technological Nasdaq 0.19%.
Treasury rates fell again, with the 10-year yield below 4% for the first time since late July.
The Federal Reserve left rates unchanged on Wednesday as the market expected but indicated it could cut interest rates three times next year, an outlook that favors markets.
The president of the US central bank, Jerome Powell, admitted that a schedule of cuts was on the table for discussion at the entity’s last monetary policy meeting of the year that ended on Wednesday.
“The Fed clearly indicated that it is willing to reduce its rates. It is a paradigm shift for the market,” summarized Adam Sarhan, of 50 Park Investments, to AFP.
“The Fed ended the most aggressive rate hike cycle in decades,” he added. The cost of credit increased 5.5 percentage points in a year and a half.
“It seems that for now the Fed has won its fight against inflation and the market is pleased with this victory,” the analyst concluded.
Among the day’s stocks, vaccine maker Moderna soared 9.25% to $85.87. The laboratory hopes that its therapeutic vaccine against skin cancer will be approved in 2025, after new positive results announced on Thursday.
Source: With information from AP
