NEW YORK, Dec 1 (Reuters) – Benchmarks and interest rates rose amid growing optimism that the U.S. Federal Reserve has finished raising U.S. interest rates and could start cutting rates next year to keep pace with inflation. The S&P 500 Index (.SPX) closed at its highest level this year on Friday. It gets cooler.
The index rose 26.83 points (0.59%) to close at 4,594.63 points, surpassing its previous 2023 high of 4,588.96 on July 31.
[1/2]Traders work on the floor of the New York Stock Exchange (NYSE) on October 27, 2023 in New York City, USA.Reuters/Brendan McDiarmid/File photo Obtaining license rights
U.S. stocks rebounded in November after three consecutive months of declines on better-than-expected earnings, adding to the view that the Fed is ending its tight monetary policy as evidence of easing inflation.
On Friday, Federal Reserve Chairman Jerome Powell said the balance between the risk of excessive tightening and the risk of not reining in inflation was “more balanced” and vowed to move “cautiously” on interest rates, benchmarking The S&P 500 index rose further.
“The market sees today’s comments as inching closer to the dovish camp,” Jeffrey Roach, chief economist at LPL Financial in Charlotte, North Carolina, said in an email. “A few weeks ago, Mr. Powell said policy was restrictive, but today he thinks policy is in the ‘fairly restrictive zone.'” Markets are understandably paying attention to the subtleties. I think that. ”
Report by Amruta Khandekar.Editing: Chizu Nomiyama, Lisa Shumaker
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