U.S. stocks rose on Thursday as investors continued to praise the Federal Reserve’s dovish turn that helped push the Dow Jones Industrial Average to a new all-time closing high.
The Dow Jones Industrial Average (^DJI) rose about 0.3%, lifting the blue-chip index following Wednesday’s record close above 37,000. The S&P 500 (^GSPC) rose almost 0.6%, and the tech-heavy Nasdaq Composite Index (^IXIC) contract rose 0.4%.
Following the Fed’s policy decision, the index hit a new high in 2023, suggesting the Fed is unlikely to raise rates further and could cut rates three times next year.
read more: Impact of the Fed’s interest rate hike suspension on bank accounts, CDs, loans, and credit cards
The message surprised and excited investors, who welcomed the Fed’s prediction that inflation would slow further and that unemployment would not rise sharply. Bonds rose along with stocks, with the 10-year Treasury yield (^TNX) dropping below 4% on Thursday for the first time since August.
Meanwhile, oil prices rose about 1.7%, moving closer to the five-month low hit earlier this week. West Texas Intermediate (CL=F) futures remained near $71 a barrel, while Brent crude oil futures (BZ=F) rose towards $76 a barrel.
Decisions by central banks in other regions will also be closely watched on Thursday to see signs of global easing. In a surprise move, Norwegian policymakers raised benchmark interest rates, but the Bank of England, along with the Swiss National Bank and the European Central Bank, left rates unchanged.
Among individual companies, Adobe (ADBE) stock fell more than 6% after the software maker’s revenue outlook suggested the economy will have to wait longer than expected for an economic recovery driven by new AI tools. Adobe also said that U.S. antitrust regulators are investigating its subscription cancellation rules.
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