Here are the most important news items that investors need to start their trading day:
1. Dow 37,000
Boom. The Dow Jones Industrial Average on Wednesday closed above 37,000 for the first time ever, as dovish signals from the Federal Reserve fueled giddiness on Wall Street with its talk of rate cuts next year. (More on that below.) The broad-based S&P 500, meanwhile, finished above 4,700 for the first time since January 2022, and the Nasdaq hit a 52-week high. More economic data are on the way Thursday: weekly jobless claims, retail sales and imports for November, and the business inventories report for October. Follow live market updates.
2. Powell power
A trader works, as a screen displays a news conference by Federal Reserve Board Chairman Jerome Powell following the Fed rate announcement, on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 13, 2023.
Brendan Mcdermid | Reuters
This year, at least for stock investors, the role of Santa Claus is being played by Fed Chair Jerome Powell. His policy-setting central bankers indicated that they could cut their benchmark rate three times next year, which is closer to the dovish vibes on Wall Street than many had expected from the Fed. And even though the annual rate of inflation is still above the Fed’s target of 2%, Wednesday’s announcement and press conference were essentially a declaration of victory over hotter price increases. “Inflation has eased from its highs, and this has come without a significant increase in unemployment,” Powell said. “That’s very good news.”
3. Meh-dobe
A sign is displayed on the exterior of an Adobe office on December 13, 2023 in San Francisco, California.
Justin Sullivan | Getty Images
Adobe shares have had a phenomenal year, climbing about 85% through Wednesday’s close, far outpacing the S&P 500’s solid gains. So the software maker was probably due for a hiccup. Adobe’s stock fell in extended trading after the company issued guidance for next year that came in…
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