Stock market today: Dow, S&P 500, Nasdaq bounce back from Fed-fueled rout
Published On Dec 19, 2024, 9:37 AM
US stocks experienced a rebound on Thursday after a previous sell-off driven by the Federal Reserve's hawkish stance on interest rates. The Dow Jones Industrial Average rose over 1% following a ten-day losing streak, while the S&P 500 and Nasdaq Composite also saw gains of approximately 1%. The Fed's latest decision to cut rates by a quarter point but lower its expectations for future cuts affected market sentiment significantly. New economic data showed the US GDP grew at an annualized rate of 3.1%, and jobless claims declined more than expected, further boosting investor confidence.
Stock Forecasts
SPY
Positive
The positive bounce back in the stock market could be seen as a reaction to reassured investors following a strong GDP growth and declining jobless claims. The broader trends suggest recovery after a hawkish reaction from the Fed, reflecting a stabilizing economy.
XLF
Positive
The financial sector saw the largest gains, indicating confidence therein might continue as interest rates stabilize. This trend may favor investment in financial ETFs like XLF, as rising interest rates generally benefit financial institutions.
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