Two major stock indexes set new records on Monday as Wall Street traders bet on continued economic uncertainty this year.
The Dow Jones Industrial Average rose 138 points, or 0.4%, by Monday's close, topping 38,000 points for the first time. The S&P 500 index rose 0.2% on the day to close at 4,850.43, a record high. The Nasdaq Composite closed up 0.3% on Monday.
Stocks have rebounded since the start of 2024 as Wall Street waits to see if the Federal Reserve can pull off a “soft landing” and lower inflation without triggering a recession. .
Fed officials ended 2023 confident that inflation is on track to return to the central bank's annual target of 2%. The Fed has said it expects to cut interest rates at some point this year, kickstarting a year-end bull market, but after a surprisingly strong December job report and an inflation report raised questions about the timing. Stock prices fell.
Rising consumer confidence has also boosted stock prices as inflation continues to slow and gas prices have fallen to pre-pandemic levels. However, rising tensions across the Middle East have raised concerns in markets about an economic downturn caused by war.
Copyright 2023 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
