Markets Have the Best FOMC Day This Year – US Market Wrap
Stocks reached new all-time highs, joining bonds and commodities in a coordinated cross-asset rally that, by one measure, was the best for a Federal Reserve day in 2024.
Equities continued their post-election rally, with the S&x;P 500 rising 0.7% and setting a new high for the 49th consecutive year. That came after Jerome Powell stated that the economy is strong without indicating that the Federal Reserve will not cut interest rates. Treasury 10-year yields fell 10 basis points, to 4.33%. The dollar dropped 0.8%.
Officials unanimously agreed to reduce the federal funds rate by a quarter percentage point to a range, following a larger cut in September. They changed the language to say “labour market conditions have generally eased,” and repeated “the unemployment rate has increased but remains low.” The statement removed the reference to “further” inflation progress, noting that inflation “has made progress towards the committee’s 2% objective but remains somewhat elevated”.
