Global Markets: US stock indices gain on hopes of Fed rate cut in 2024
On Wall Street, US stock indices gained on Tuesday on hopes of a rate cut by the Federal Reserve in 2024.
The Dow Jones Industrial Average rose 5.80 points, or 0.02%, at the open to 37,311.82. The S&P 500 opened higher by 3.16 points, or 0.07%, at 4,743.72. The Nasdaq Composite gained 17.82 points, or 0.12%, to 14,923.02 at the opening bell.
After a dovish pivot from the Federal Reserve last week, investors widely expect the US central bank to cut the interest rates next year.
Before the opening bell, futures for the S&P 500 and the Dow Jones Industrial Average each rose 0.2%.
On Monday, US stocks ended higher ahead of crucial economic data. The Dow Jones Industrial Average held steady at 37,306.02, the S&P 500 gained 21.37 points, or 0.45%, to 4,740.56 and the Nasdaq Composite added 90.89 points, or 0.61%, to 14,904.81.
In Europe, the benchmark STOXX 600 was up 0.2%. Britain’s FTSE 100 was flat at 7,616.21 points. Germany’s DAX rose 0.4% at 16,710.29. France’s CAC 40 was flat at 7,567.12 points.
Asian stock markets mostly rose on Tuesday. Hong Kong’s Hang Seng Index fell 0.8% at 16,505.00. China’s Shanghai Composite added 0.1% at 2,932.39.
South Korea’s Kospi edged 0.1% higher to 2,568.55. Australia’s S&P/ASX 200 added 0.8% to 7,489.10.
Japan’s Nikkei 225 gained 1.4% at 33,219.39 after the Bank of Japan (BoJ) kept its monetary policy unchanged.
Oil prices edged lower on Tuesday after the United States announced the formation of a task force to protect Red Sea trade, following attacks by Iran-backed Yemeni militants on vessels.
Brent crude slipped 22 cents, or 0.3%, to $77.73 a barrel by 1310 GMT. US West Texas Intermediate crude for January, which expires on Tuesday, was down 42 cents at $72.05 while the more active February contract lost 27 cents.
Gold was steady at $2,026.3 an ounce.
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Published: 19 Dec 2023, 09:08 PM IST
