Stocks Rally to Record Highs as Fed Signals Cooling Inflation
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The Dow Jones Industrial Average hit an all-time high this week, erasing losses from the interest rate spike. 26 of 30 Dow stocks posted gains, led by Intel (up 42%), Boeing (up 40%), and Salesforce (up 31%).
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The S&P 500 is up 15% from late October, led by Carnival (up 66%). Top performers include chipmakers AMD and Broadcom.
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The "magnificent seven" big tech stocks are up 17% on average, in line with the Nasdaq. Apple, Microsoft, and Nvidia notched record highs.
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The Dow's worst performers were Chevron (down 4%) and Walmart (down 6%). Over 15 of the S&P's worst performers were energy companies.
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The Fed signaled lower interest rates in 2024, supporting the notion that inflation has cooled. Stocks rallied on the news.