Bull Run Record on FOMC Day – US Market Wrap
Daily Dose, US

Bull Run Record on FOMC Day – US Market Wrap

Stocks reached new all-time highs as the Federal Reserve did little to change Wall Street’s bets that interest rates will fall at least twice in 2024, despite the central bank’s more cautious outlook.

The S&P 500 surpassed 5,400 for the first time on Wednesday, marking the 20-month anniversary of the bull market. Treasury yields did moderate their decline following the central bank decision. Fed swaps continued to fully price in quarter-point interest rate cuts in November and December.

US policymakers planned only one rate cut this year, but now expect four in 2025. The Fed changed the language in its statement, noting “modest further progress towards the committee’s 2% inflation objective.” Previously, the statement indicated a “lack” of additional progress.

Prior to the Fed decision, data showed that the core consumer price index had cooled to its slowest pace in more than three years.