DJI: Dow Jones Soars Above 37,000 to Close at Record High on Upbeat Fed Message

US central bank signaled three rate cuts in 2024 and Wall Street threw the “We’re so back” party.

• The Dow Jones Industrial Average DJI went off the chart yesterday, notching a fresh all-time record. The 30-stock index powered higher by 512 points, or 1.4%, closing at 37,090 points. All thanks to Jerome Powell finally giving markets what they asked for: rate cuts are coming.
• The Federal Reserve signaled that it might begin cutting interest rates next year. After Fed boss Powell and his clique of central bankers left rates unchanged, they hinted that at least three planned trims to borrowing costs are on the 2024 agenda. The news spurred a rally.
• Adrenaline rush swept across all corners of the stock market. The Dow’s record was joined by Apple AAPL, ticking up into record territory. The S&P 500 and the Nasdaq Composite turned up by 1.4% each as the prospects for lower rates meant that businesses could elevate their borrowing activity. But what if… that new liquidity brings inflation back?