The Dow Jones Industrial Average closed above 37,000 for the first time in history after Federal Reserve Chairman Jerome Powell signaled, for starters, that policymakers are likely done raising interest rates and cuts could soon be on the cards.

“We believe we will likely be at or near this cycle's peak rate. Participants didn't note additional increases that we believe were likely. So that's what we wrote down. But participants also didn't want to take the possibility of further increases off the table. So it was That's what we were thinking,” Powell said during a news conference following the decision.

Federal Reserve Chairman Jerome Powell speaks during a news conference at Federal Reserve headquarters on December 13, 2023, in Washington, D.C. The Federal Reserve today announced that interest rates will remain unchanged. ((Photo by Win McNamee/Getty Images))

Policymakers in their annual projections assessed the potential for three rate cuts, with the federal funds rate falling to a range of 4.4% to 4.9%, down from the current 5.25% to 5. 50%.

The Dow Jones Industrial Average added 512.30 points, or 1.4%, on Wednesday. The Nasdaq and S&P 500 gained 1.38% and 1.3%, respectively.

WHAT AMERICANS ARE MOST CONCERNED ABOUT

Clock Security Last To change To change %
Me: DJI DOW JONES AVERAGES 37090.24 +512.30 +1.40%
SP500 S&P 500 4707.09 +63.39 +1.37%
Me:COMP NASDAQ COMPOSITE INDEX 14733.96386 +200.57 +1.38%

This is the Dow's first record close since January 2022, with the benchmark index up more than 11% in 2023 as of Wednesday.

“This is great news for the stock market and the U.S. economy,” Wharton University professor Jeremy Siegel said during an appearance on “The Claman Countdown” following Powell’s presser. He predicts the first potential rate cut will come in March, in line with the CME FedWatch Tool.

ETSY WILL FIRE 11% OF STAFF, UNCERTAIN ECONOMY, THE BLAME

Dow Jones Industrial Average

UnitedHealth Group added the most points to the benchmark since the 36,000 level, while 3M subtracted the most, according to Dow Jones Market Data Group.

Litter

An Apple logo hangs above the entrance to the Apple store on 5th Avenue in the Manhattan borough of New York City (REUTERS/Mike Segar/File photo/Reuters Photos)

Apple also closed on a high and added $1 trillion in market value this year alone, bringing it to $3 trillion.

Clock Security Last To change To change %
UNH UNITEDHEALTH GROUP INC. 548.98 +3.32 +0.61%
MMM 3M CO. 104.21 +1.63 +1.59%
AAPL APPLE INC. 197.96 +3.25 +1.67%

As for the economy, inflation, although slowing down, continues to be an unknown for political decision-makers.

“Inflation has declined from its highs and this has occurred without a significant increase in unemployment. This is very good news, but inflation is still very high. Continued progress in reducing it is not guaranteed and the path forward is uncertain” , Powell added. .

INSIDE THE NOVEMBER CPI

Earlier this week, the consumer price index for November declined, but some pockets of prices remain elevated.

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