US stocks rise for 2nd day after Fed indicates rate cuts for next year

10-year US Treasury yield plummets 3% to 3.917% -- lowest since July

By Ovunc Kutlu

ISTANBUL (AA) - US stock exchanges closed with gains for the second consecutive day on Thursday after the Federal Reserve indicated that multiple interest rate cuts are likely next year.

The Dow Jones Industrial Average was up 158 points, or 0.43%, to finish at 37,248 after the blue-chip index soared 1.4% on Wednesday.

The S&P 500 added 12 points, or 0.26%, to 4,719 to follow a gain of 1.37% in the previous session.

The Nasdaq increased 27 points, or 0.19%, to end the session at 14,761 after the tech-heavy index jumped 1.38% the previous day.

The rally on Wednesday came after the Fed indicated that it could cut rates at least three times in 2024 and could make an additional four rate cuts by 25 basis points each during 2025. The central bank also penciled in three more rate cuts for 2026, according to its projection materials.

Despite the positive sentiment among investors, the VIX volatility index, also known as the fear index, was up 2.4% to 12.48.

The 10-year US Treasury yield, on the other hand, plummeted 3% to 3.917%, its lowest level since July.

The dollar index decreased 0.87% to 101.97, while the euro added 1.1% to $1.0993 against the greenback.

Precious metals were in positive territory, with gold rising 0.44% to $2,036 per ounce and silver increasing 1.5% to $24.17.

Bitcoin was up 0.5% at $43,020 at the time, while the total value of the crypto market rose 0.7% to $1.62 trillion.

Oil prices increased around 3.3%, with global benchmark Brent crude at $76.71 per barrel and US benchmark West Texas Intermediate crude at $71.70.

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