Dow rallies more than 500 points to record, closes above 37,000 for first time
(CNBC) -- The Dow Jones industrial Average jumped to a record Wednesday as the Federal Reserve signaled it would cut rates several times next year, satisfying investors who hoped the central bank would finally start to acknowledge the slowing trend of inflation with a less-aggressive monetary stance.
The 30-stock Dow added more than 512 points, or 1.40%. At its high of the day, the Dow touched 37,094.85 to surpass 37,000 for the first time and exceed its previous all-time high in January 2022. The S&P 500 jumped 1.37% with bank and real estate shares leading the way, while the Nasdaq Composite climbed 1.38%.
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. Investors have been increasingly hoping for the Fed to give a clearer signal that it would start cutting rates next year with recent inflation data easing.
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