Key Takeaways

  • Dow Jones notched its third back-to-back record close on Friday, riding on the Fed’s momentum.
  • Futures contracts remained in the green, pointing to more gains for the 30-stock average.

Dow Closes at Record

The Dow Jones Industrial Average closed higher on Friday, climbing to a fresh record for the third day in a row. The 30-stock Wall Street benchmark added 56 points to top 37,305 points, the highest-ever close. What’s more, the index is looking to open higher with futures contracts adding some 0.2% ahead of Monday’s regular session.  

It’s been a festive week before the festivities had even started. The Federal Reserve’s rate-setting meeting last Wednesday finally gave investors what they wanted. Rate cuts! As many as three interest rate cuts are likely on the 2024 agenda for the US central bank. The news spurred a rally that’s still going, and it’s what’s keeping the Dow breaking new records.  

S&P 500 Logs Seven Winning Weeks

The Dow’s two peers, the S&P 500 and the Nasdaq Composite, closed Friday’s session mixed but still in the green for the week. The S&P 500 slipped under the flatline by a modest 0.01% loss but logged its seventh straight week of winnings. The Nasdaq Composite gained 0.35% for the session and is now some 8% away from a fresh all-time high. 

All three indexes closed the week with gains north of 2% as investors couldn’t contain their enthusiasm for risk assets.  

Elsewhere in Dealmaking 

In other corners of financial markets, the US dollar erased some of its gains last week and remained under pressure early Monday. The EUR/USD slipped advanced above $1.09 in early dealmaking today after gaining for the past four days in a row before snapping the streak on Friday.  

It’s a quiet week ahead in terms of economic updates and news. In that context, traders might want to take some time to reassess their portfolio selections and adjust accordingly.