401(k) boon: Dow Jones hits all-time high at close after Fed forecasts lower rates
A Christmas tree stands in front of the New York Stock Exchange (NYSE) in New York on December 1, 2023.
Good news for your 401(k): the Dow Jones Industrial Average closed at a record high Wednesday after the Federal Reserve said interest rates may go down in 2024.
The Dow, a gauge of blue-chip stocks, closed at 37,090.24, up 1.4% from the previous day. Other major stock indices also rose, with the S&P 500 up 1.4% and nearing its own record high.
The stock market’s rally came after the Fed on Wednesday left its key short-term interest rate unchanged at a 22-year high of 5.25% to 5.5%. The central bank hinted that rate hikes are likely over, and forecast three cuts in 2024.
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This article originally appeared on USA TODAY: 401(k) boon: Dow Jones hits all-time high at close after Fed forecasts lower rates