Fed Signals Interest-Rate Cuts Propel Dow Jones to Record Close

A total of 51 stocks in the S&P 500 reached record highs on Tuesday, the highest number since April 2022. This surge in stock prices is part of a year-end rally driven by falling benchmark yields and expectations of future interest rate cuts. The Dow Jones Industrial Average also ended at its third-highest level on record, while the S&P 500 and Nasdaq Composite Index continued to set new closing highs for 2023. The push higher for stocks followed easing inflation data for November, although inflation still remains above the Federal Reserve's target. Investors are now awaiting the Federal Reserve's decision on interest rates, with expectations that short-term rates will remain unchanged.