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US Stocks Close Higher Ahead of CPI Data and FED


London, Monday 11 December 2023


The S&P 500 (\GSPC) and Dow Jones Industrial Average (\DJI) closed at their highest points since January 2022 and March 2022, respectively, as each index increased by roughly 0.4%.



After a choppy start to the trading day, stocks ended the day higher on Monday as investors anticipated the Federal Reserve's final policy decision of the year and a significant inflation report.


Reversing earlier losses, tech companies also saw gains. The Nasdaq Composite (^IXIC) added by 0.2%, reaching its highest closing since April 2022.

Investors are preparing for two events that could determine the direction of equities in 2024: the Fed's interest rate decision and November's consumer inflation reading.


Friday's jobs report increased expectations that the Fed will provide a "soft landing" for the US economy, which is struggling with historically high borrowing costs. With the S&P 500 and Nasdaq finishing at their highest points since early 2022, that assisted the gauges in capping their sixth consecutive week of gains.


The Consumer Price Index data, which is expected on Tuesday, will now be the main focus and might challenge this optimism. Expectations that the Fed will halt rate hikes this week have been reinforced by signs of a lowering inflation rate, and bets are mounting that rates will be slashed before the summer.


(Source: Yahoo!Finance // Edited by The Decision Maker - Finance editors)


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