The Dow Jones Industrial Average surged ahead, marking its first gain in 10 sessions as investors awaited the Federal Reserve’s final policy update for 2024. The index closed up 200 points, or 0.5%, at around 43,650.
The S&P 500 and Nasdaq Composite also posted gains, with the S&P rising 10 points, or 0.2%, to roughly 6,061, while the Nasdaq Composite increased by 29 points, or 0.1%, to around 20,138.
Industry experts attribute the market’s recent rally to the new administration and expected policy changes. Robert Pavlik, a senior portfolio manager at Dakota Wealth Management, believes that more tariffs may emerge and lower oil prices, which could impact energy producers’ willingness to invest.
Oil futures extended their gains after the US Energy Information Administration reported a decline in domestic crude inventories for the fourth consecutive week. West Texas Intermediate crude rose 93 cents, or 1.3%, to $71.01 a barrel ahead of the contract’s expiration.
Small-cap stocks led the broader market higher on Wednesday morning as investors awaited the Fed’s policy announcement. The Russell 2000 index surged 0.4% after tumbling over 1% in the previous session.
However, housing-starts data fell short of expectations, highlighting the importance of a drop in mortgage rates to boost housing activity. Nationwide economist Daniel Vielhaber stated that “we are likely a ways off from mortgage rates that will provide more than a moderate boost to housing market activity.”
Source: https://www.marketwatch.com/livecoverage/stock-market-today-dow-futures-rise-ahead-of-final-rate-decision-and-economic-forecast-of-the-year