S&P 500 made substantial gains on Tuesday, coming close to its all-time high. This surge can be attributed to the Federal Reserve’s recent shift towards maintaining lower interest rates, which has boosted investor confidence and propelled stock prices upward.
The S&P 500 witnessed a 0.59% increase, reaching a level of 4,768.37. With this progress, the index is just 0.6% away from surpassing its previous record close and only 1% away from equaling its intraday record, both achieved in January 2022.
Simultaneously, the Dow Jones Industrial Average rose by 251.90 points or 0.68% to 37,557.92, while the Nasdaq Composite experienced a 0.66% advance, closing at 15,003.22. Notably, this marked the first time since January 2022 that the tech-heavy Nasdaq Composite surpassed the 15,000 level at closing.
Reaching all-time highs, the Nasdaq 100 gained 0.49%, both in terms of intraday and closing values, settling at 16,811.85.
Among the top performers in the Dow, Walgreens Boots Alliance witnessed a 4.2% surge in share prices. Additionally, solar stocks like Enphase Energy and First Solar were prominent advancers in the S&P 500, experiencing gains of roughly 9% and 4%, respectively.
Energy stocks also outperformed, with the S&P 500’s energy sector rising by 1.2% due to an increase in oil prices. Occidental Petroleum shares surged by 2.3%, while Halliburton and Exxon Mobil shares recorded gains of over 1%.
Equities have been experiencing a robust rally lately, largely driven by the Federal Reserve’s indication of three potential interest rate cuts in 2024. This news has served as a significant catalyst for the market. Additionally, signs of inflation cooling down and a decline in Treasury yields have further bolstered risk assets, coinciding with the typically strong season for equities.
Kim Forrest, the founder at Bokeh Capital Partners, stated, “This bias of buying stocks is taking hold. And unless news changes it, we’re probably going to drift higher every single day because of it.”
Source (CNBC)
