U.S. Stocks Surge, Ignoring Fed Chairman’s Cautions

U.S. stocks displayed impressive strength on Friday, showing resilience despite Federal Reserve Chairman Jerome Powell’s cautionary remarks about discussions on rate cuts being premature.

The Dow Jones Industrial Average (DJIA) gained around 294 points or 0.8%, reaching a closing point near 36,245, as per preliminary FactSet data. Similarly, the S&P 500 index rose by 0.6%, while the Nasdaq Composite Index experienced a gain of 0.6%. Notably, all three indexes have witnessed gains for five consecutive weeks.

The powerful upward trajectory of equities since early November can be attributed to factors like easing inflation, declining long-term Treasury yields, and expectations of potential rate cuts in the coming year. The 10-year Treasury yield, after surging to 5% in October, fell to 4.225% on Friday—the lowest yield recorded since early September, according to DJMD data.

This remarkable rally has helped the Dow achieve its highest closing point since January 2022, and the S&P 500 attained its peak level since March 2022, as documented by Dow Jones Market Data.

In summary, despite the Fed Chairman’s warning, U.S. stocks put up a spirited performance, driven by positive market influences that continue to captivate investors.

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