The Strategist

The Dow closes at the second highest point in history

12/27/2023 - 06:57

Amidst the anticipation of a potential interest rate decrease by the Federal Reserve (Fed) in 2024, investors were assessing corporate news as the U.S. stock market started the final week of the year with a positive outlook.
According to CME FedWatch, traders anticipate that there is an 82% chance that the Fed will lower rates by at least 25 basis points in March.

The growth of the PCE Core index, which is a crucial gauge used by the Fed to evaluate inflation risks, slowed in November in monthly terms to 0.1% from 0.2% a month earlier and in annual terms to 3.2% from 3.5%, as was revealed last week. This raises the watchdog that the regulator will lower interest rates.

In the meantime, the Federal Reserve Bank of Chicago (FRB), which computes the Chicago Fed National Activity Index (CFNAI), reported on Tuesday that the index, which measures activity in the US economy, increased to plus 0.03 points in November from minus 0.66 points a month earlier. An increase in activity is indicated by a positive index value, whilst a reduction in activity is shown by a negative number.