RE: For what it's worth!13 Dec 2023 19:56
All change with dovish Fed…
From cnbc app
“ The Dow Jones industrial Average jumped more than 300 points and was on pace for a record close Wednesday as the Federal Reserve signaled it would cut rates by more than previously forecast.
The 30-stock Dow added 310 points, or 0.8%, to 36,888.10, which would surpass its previous record close in January of 2022.The S&P 500 jumped 0.9% with bank and real estate shares leading the way, while the Nasdaq Composite climbed 0.9%.
The central bank held the benchmark overnight borrowing rate steady in the 5.25% to 5.5% range as expected, but more importantly it forecast three rate cuts in 2024, which was more than it had previously indicated. The Dow has been under pressure since reaching record levels in early 2022, as the Fed embarked on its policy tightening campaign to fend off inflation. Last year, the 30-stock benchmark dropped 8.8% — its biggest annual decline since 2008.
In the past month, however, the Dow has surged more than 7% — outpacing the S&P 500 and Nasdaq — as hope of easier policy grew.
The Fed’s meeting statement acknowledged that inflation “has eased” over the past year and the central bank formally lowered its inflation forecast for 2024, seeing a 2.4% rate down from 2.6%.”
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US 10years now 4.022%, Fed have guided three cuts and they may be deeper than anticipated. Well obviously it would as US elections pending!
Also oil interestingly up on higher withdrawals but NG sill at lows on mild weather but futures are going up due to US LNG export capacity coming on stream (source trading economics).
So DEC went down as 10year treasuries went up and went down as futures LNG prices went down.
Soon to be listed on the NYSE at +20% yield sounds to me like rather fortuitous timing as the scenario is now looking like the opposite!
But as always it depends on what SP lens you are looking through but let’s hope to recover some of those losses! For all!
Usual caveats
Trek
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