Tue Sep 24 04:08:46 UTC 2024: ## US Stocks Soar to Record Highs on Hopes of More Fed Rate Cuts
**New York, NY** – US stocks closed at record highs on Monday, buoyed by growing expectations of further interest rate cuts by the Federal Reserve. The Dow Jones Industrial Average gained 0.15% to close at 42,124.65, while the S&P 500 also reached a new peak.
The odds of a significant 50 basis point rate cut at the Fed’s November meeting jumped to 53% from 29% just a week ago, according to the CME FedWatch Tool. This surge in anticipation is fueled by recent comments from Federal Reserve officials, including Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari.
Goolsbee indicated that the Fed should prioritize the jobs market over inflation control, suggesting further rate cuts in the coming year. Kashkari echoed this sentiment, highlighting the risks of a weakening labor market and advocating for a lower federal funds rate.
Markets are now projecting the Fed funds rate to fall below 3% by the end of 2025, down from its current level of 4.83%. This aligns with Kashkari’s projection for a long-term Fed funds rate of around 2.9%.
Investors will be closely watching key economic data releases this week, including consumer confidence data on Tuesday, revised second-quarter GDP growth on Thursday, and the personal consumption expenditures index on Friday, which is the Fed’s preferred inflation gauge. The PCE index is expected to show a 2.2% increase in prices last month, bringing it closer to the central bank’s 2% target.
In other market news, oil prices declined, with West Texas Intermediate crude down 0.73% to $70.48 a barrel and Brent crude falling 0.67% to $73.99 a barrel. Gold prices, however, rose 0.19% to $2,651.20 an ounce.
First Piper 