Dow Smashes 47,000 on Trade Truce Buzz – Fed Rate Cut Hopes Fuel Record Rally
Wall Street enters this week riding a wave of euphoria. Last Friday’s cooler-than-expected inflation report ignited an end-of-week rally, sending all three major U.S. indices to all-time highs wral.com wral.com. The Dow’s historic close above 47,000 was accompanied by the S&P 500 and Nasdaq Composite also finishing at record levels wral.com. Wall Street’s “fear gauge,” the VIX volatility index, sank to its lowest in months as investors piled into risk assets wral.com. The rally was fueled by easing price pressures and upbeat earnings. The September Consumer Price Index showed inflation rising just 3.0% annually – slightly cooler than forecast – bolstering hopes that the Fed will finally pivot to rate cuts wral.com reuters.com. “That boosted expectations that the Federal Reserve will cut interest rates at its upcoming policy meetings next week and in December,” noted CNN, after the benign inflation data came out wral.com. At the same time, corporate earnings continue to impress: tech giants like AMD and Nvidia blew past forecasts, sparking big stock pops and reinforcing the market’s faith in the profit outlook ts2.tech ts2.tech. “When the Fed is lowering rates and earnings are good, markets don’t go down very much,” observed Bob Doll, CEO of Crossmark Global