US: Dow at new record as stocks drift higher

WALL Street stocks pushed higher on Tuesday (Dec 19), extending a rally as bullish investor sentiment and optimism about easing US monetary policy lifted the Dow to another fresh record.

“It looks like we are getting the year-end rally that we were hoping for,” said Jack Ablin, chief investment officer for Cresset Asset Management.

The Dow Jones Industrial Average ended at a record for the fifth straight session, piling on more than 250 points or 0.7 per cent to end at 37,557.92.

The broad-based S&P 500 climbed 0.6 per cent to 4,768.37, while the tech-rich Nasdaq Composite Index jumped 0.7 per cent to 15,003.22.

Analysts have pointed to the Federal Reserve’s latest decision to hold interest rates steady and signal expected 2024 interest rate cuts as a factor in prolonging a late-year equity surge. Another factor is a seasonal tradition that has often led to market appreciation in December.

“Right now, it’s somewhat of an emotionally charged market,” Ablin said. “Investors are enthusiastic and they want to see the equities rally.”

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Among individual companies, Google parent Alphabet gained 0.7 per cent, shrugging off an antitrust settlement in which the tech giant agreed to pay US$700 million and alter its Google Play app store to reduce competition barriers for developers.

US Steel fell 2.5 per cent after three Republican senators, including Ohio’s JD Vance, urged the rejection of its acquisition by Japan’s Nippon Steel, saying domestic steel production is “vital to US national security”.

The letter, jointly signed by Marco Rubio of Florida and Josh Hawley of Missouri, urged the Committee on Foreign Investment in the United States to block the deal. Shares of US Steel had rocketed 26 per cent higher on Monday following the deal. AFP