The Dow Jones industrial average briefly crossed the 27,000 mark for the first time ever, boosted by bets that the Federal Reserve is poised to cut interest rates for the first time in a decade.
The blue-chip index soared 147.66 points moments after Thursday’s open to hit 27,007.86 — blowing past an all-time intraday high of 26,983.45 that was reached a day earlier.
Markets have been on a tear since Fed chair Jerome Powell signaled Wednesday that the Fed is likely to cut interest rates at the conclusion of the Federal Open Market Committee’s July 30-31 meeting in response to economic “uncertainty.”
“Crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook,” Powell said Wednesday in a hearing before the House Financial Services Committee.
Powell is set to testify before the Senate Banking Committee on Thursday.
Although Powell acknowledged the economy has been performing “reasonably well” this year, Wall Street has felt the Fed was too aggressive with rate hikes in 2018.
Earlier this year, the Fed signaled it would be patient with hikes, but as trade tensions re-emerged, the demand for rate cuts intensified.
The S&P 500 and Nasdaq were up 0.2 percent and 0.1 percent early Thursday — with the S&P briefly surpassing the 3000 threshold it first reached Wednesday.
Source: NY Post