Stocks Hit Fresh Records on Earnings Optimism as Dollar Slides – US Market Wrap
US equities surged to new all-time highs amid growing confidence that strong corporate earnings will continue to drive market gains. The dollar weakened sharply, falling to its lowest level in nearly four years, while gold remained elevated above $5,000.
The S&P 500 advanced for a fifth straight session, nearing the 7,000 mark, even as consumer confidence declined. A constructive outlook from United Parcel Service added to the upbeat tone. The Nasdaq 100 climbed 0.9% ahead of earnings from major technology companies. In contrast, UnitedHealth weighed on insurers after issuing a downbeat forecast and following a US proposal to keep payments to private Medicare plans unchanged next year.
The dollar dropped to its weakest level since February 2022, with signs of US backing for efforts to strengthen the yen fueling speculation about possible coordinated action to steer the greenback lower against key trading partners.
Treasury yields edged higher ahead of the Federal Reserve’s policy decision. The central bank is widely expected to pause its rate-cutting cycle as a more stable labor market helps restore alignment among policymakers after months of internal disagreement. The anticipated decision to hold rates is likely to heighten tensions with Trump, who has been pressing for deeper cuts.
By the close, the S&P 500 gained 0.4%. The Dow Jones Industrial Average fell 0.8%, while the Russell 2000 rose 0.3%. The yield on 10-year Treasuries increased two basis points to 4.23%. The dollar slid 1%.
Oil prices climbed as Trump highlighted an expanding US military presence near Iran, while markets also tracked the impact of a major winter storm across the country.
