US indexes continued to climb after the S&P 500 notched its best winning streak since 2021. The rally was fueled by investor enthusiasm about the possible end to the Fed’s hiking cycle.
In response, Treasury yields have fallen back from 16-year highs, though the decline has slowed significantly on Wednesday. Despite investor enthusiasm for potential rate cuts, Fed officials were careful to communicate that hikes are not yet off the table, especially as inflation remains above the bank’s 2% target. Investors can also expect commentary from Chairman Jerome Powell later today, as well as New York Fed President John Williams.
The broad index and the Dow Jones Industrial Average have notched seven straight gains, while the Nasdaq has advanced in eight consecutive sessions. On a winning streak, the Fed and an earnings recession present key risks. Additionally, there are warnings to prepare for a “downsized America” as consumers cut back, according to Kevin O’Leary.
Here’s where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
– S&P 500: 4,387.71, up 0.21%
– Dow Jones Industrial Average: 34,211.34, up 0.17% (58.74 points)
– Nasdaq Composite: 13,669.67, up 0.22%
In commodities, bonds, and crypto:
– West Texas Intermediate crude oil fell 0.91% to $76.7 a barrel.
– Brent crude, the international benchmark, lost 0.82% to $81.2 a barrel.
– Gold inched 0.25% lower to $1,964.40 per ounce.
– The 10-year Treasury yield dipped 0.4 basis point to 4.567%.
– Bitcoin stayed essentially flat at $35,371.
Bonds are back, and here’s why investors are returning, including Warren Buffett.
The rally comes amid excitement about the possible end of the Federal Reserve’s hiking cycle, after the central bank kept interest rates steady at the 5.25%-5.50% range at last week’s FOMC meeting. On Wednesday, Fed Governor Lisa Cook noted that geopolitical turmoil could cause inflation to rebound.
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