US stocks continue rally after Fed indicates multiple rate cuts in coming years

Gold rises 1%, Bitcoin up 2.6%; 10-year US Treasury yield plummets 2.1% to 3.952%

By Ovunc Kutlu

ISTANBUL (AA) - US stock exchanges opened higher Thursday to continue their rally from the previous session as the Federal Reserve indicated multiple interest rate cuts in coming years.

The Dow Jones was up 56 points, or 0.15%, to 37,148, after the blue-chip index soared 1.4% on Wednesday.

The S&P 500 added 26 points, or 0.57%, to 4,733 to follow a gain 1.37% on the previous session.

The Nasdaq increased 107 points, or 0.73%, to end the session at 14,841, while the tech-heavy index jumped 1.38% on the previous day.

The Fed on Wednesday skipped an interest rate hike for the fourth time this year, as expected, and kept its federal funds rate unchanged between the 5.25%-5.5% target range – the highest in 22 years.

The central bank indicated at least three interest rate cuts in 2024, an additional four rate cuts by 25 basis points each during 2025, and also penciled in three more rate cuts for 2026, according to its projection materials.

Fed Chair Jerome Powell said in his post-meeting press conference that the question to lower interest rates "begins to come into view" and it was discussed by the members of the Federal Open Market Committee during the meeting.

The VIX volatility index, also known as the fear index, was down 1.3% to 12.03. The 10-year US Treasury yield plummeted 2.1% to 3.952%.

The dollar index decreased 0.67% to 102.18, while the euro added 1% to $1.0979 against the greenback.

Precious metals were in positive territory, with gold rising 1% to $2,048 per ounce and silver increasing 1.6% to $24.16.

Bitcoin was up 2.6% to $42,604 at the time, while the total value of the crypto market was up 3.46% to $1.61 trillion.

Oil prices rose around 3.4%, with global benchmark Brent crude at $76.79 per barrel and US benchmark West Texas Intermediate crude at $71.97.

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