US Stocks Continue to Climb as Rally Hits Longest Winning Streak Since 2021
After achieving its best winning streak in two years, the S&P 500 fueled a continued rally in US stocks on Wednesday. The Dow Jones Industrial Average and the Nasdaq also notched consecutive gains, signaling investor enthusiasm over the potential end of the Federal Reserve’s hiking cycle.
Last week, the Fed kept interest rates steady amidst expectations of rate cuts. This move caused Treasury yields to fall from 16-year highs, although the decline slowed on Wednesday. Despite this, Fed officials remained cautious and emphasized that hikes are not yet off the table, especially with inflation still above the bank’s 2% target.
Fed Governor Lisa Cook also noted that geopolitical turmoil, particularly involving Russia, the Middle East, or China could cause inflation to rebound. Investors can expect commentary from Chairman Jerome Powell and New York Fed President John Williams later today.
At the opening bell on Wednesday, the S&P 500 was up 0.21%, the Dow Jones Industrial Average was up 0.17%, and the Nasdaq Composite was up 0.22%.
In other news, despite the stock market’s winning streak, the Fed and an earnings recession pose key risks, and consumer cutbacks could lead to a “downsized America.” Additionally, Warren Buffett and other investors are returning to bonds.
In commodities, crude oil prices fell, gold inched lower, the 10-year Treasury yield dipped, and Bitcoin remained flat. The ongoing bullish streak in the stock market comes amidst continued uncertainty in the larger economic and geopolitical landscape.
I have over 10 years of experience in the cryptocurrency industry and I have been on the list of the top authors on LinkedIn for the past 5 years. I have a wealth of knowledge to share with my readers, and my goal is to help them navigate the ever-changing world of cryptocurrencies.
