The United States stock market will finish its seventh straight week this week in positive territory, and futures continued to climb Friday morning.
The Dow Jones industrial average closed Thursday at an all time high. While some analysts see volatile trading ahead, few people on Wall Street had predicted a year end surge to almost 38,000 on the Dow and the second week in December closing up almost 3%. The Standard and Poors 500 index could well reach its all time high by the close of the markets Friday.
The Federal Reserve indicated this week that inflation seems less of a risk and that interest rate hikes had finally seemed to impact the economy. Wall Street took this as a sign that it is likely that multiple interest rate cuts will be coming in 2024 and that the economy could be in for a soft landing.
Optimism was clearly the feeling of the week when it comes to the United States economy. Real Estate prices will likely continue to climb, and it is possible that inventory will increase if interest rates go lower.
While the Federal Reserve is not expected to cut interest rates in the first few weeks of 2024, it is likely now that the first interest rate cut could come as early as late first quarter.
The ten year Treasury yield dropped 20% since October to below 4%.