Stocks Rally While Dollar Drops as Fed Signals Possible Rate Cuts Ahead Despite Economic Resilience
• Stocks ended higher while Treasury yields hit multi-month lows after the Fed signaled an end to interest rate hikes and potential rate cuts in 2024.
• The dollar hit a two-week low against the euro and a over four-month low against the yen following the Fed's dovish policy shift.
• U.S. retail sales unexpectedly rebounded in November and jobless claims dipped, signaling economic and consumer resilience.
• The ECB held interest rates steady but pushed back on speculation of imminent rate cuts, while other global central banks took varying policy actions.
• Oil prices surged over 3% after the IEA lifted its oil demand forecasts for 2023, while gold prices also advanced.