Fed Keeps Rates Steady, Signals Cuts For 2024; Powell Ignites Stock Rally: The Week In The Markets

The Federal Reserve maintained interest rates Wednesday at the 5.25%-5.5% range in its last meeting of the year. At the same time, the Fed also signaled a willingness to begin reducing the cost of borrowing money in 2024.

Fed Chair Jerome Powell stated interest rates are “likely at or near the peak of this tightening cycle” and rate cuts are already under discussion by the board. Investors responded positively to the Fed’s guidance by flocking to stocks and bonds due to growing optimism about potential interest rate reductions in 2024.

Dow Jones Reaches Record Highs: The Dow Jones Industrial Average, as tracked by the SPDR Dow Jones Industrial Average ETF Trust DIA, representing the 30 largest U.S . blue-chip stocks, hit a new all-time high in reaction to the Fed meeting this week.

Chart of The Week: US Blue Chip Stocks Set New All-Time Highs

Mortgage Rates Fall Below 7%: The decline in Treasury bond yields, with the 10-year falling below 4%, is contributing to a gradual decrease in housing mortgage rates. In fact, the average 30-year mortgage rate has dipped below the 7% mark for the first time since August. As a result, the real estate sector has exhibited strong stock performance following the Federal Reserve meeting.

COP28 Sets Historical Commitment: At the COP28 summit held in Dubai, nations from around the world achieved a historic agreement to shift away from fossil fuels as part of a concerted effort to attain net-zero carbon emissions target by the year 2050, in line with the recommendations put forth by the scientific community.

Tesla Outshines Generators: Tesla Inc. TSLA’s latest report reveals that its Powerwall, combined with solar panels, surpasses traditional generators in efficiency, reliability and environmental friendliness, offering a sustainable energy solution.

SpaceX Hits $180 Billion: SpaceX’s valuation soars to $180 billion, surpassing industry giants Boeing Co BA, Lockheed Martin Corp. LMT, Walt Disney Co DIS, Verizon Inc. VZ and International Business Machines Corp. IBM, reinforcing Elon Musk‘s company as a leading force in the aerospace, technology and entertainment sectors.

Apple’s OLED Revolution: Apple Inc. AAPL is reportedly planning to introduce OLED screens in its MacBooks and iPads, potentially revolutionizing the display industry.

“Cocomelon” Tops “Stranger Things”: "Cocomelon," a children’s show, has surpassed “Stranger Things” on Netflix Inc. NFLX, accumulating over 600 million hours of watch time. This success highlights the popularity of family-friendly content on the platform.

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