US markets experienced a significant surge following the Federal Reserve’s recent policy announcement. The Dow, S&P 500, and Nasdaq soared, setting new records. This remarkable climb came after the Fed disclosed its intention to maintain interest rates and predicted three rate reductions in 2024.

The Dow closed at 37,090.24, surpassing its previous record high, while the S&P 500 and Nasdaq also gained 1.4%. These gains contributed to year-to-date increases of 11.9% for the Dow, 22.6% for the S&P 500, and over 40% for the Nasdaq Composite.

Joseph Brusuelas, RSM’s chief economist, emphasized the Fed’s optimistic stance, noting their intention to decrease the federal funds policy rate by at least 75 basis points in 2024, signaling support for continued business growth.

The CNN Business Fear & Greed Index, reflecting market sentiment, stayed in the “greed” zone as markets surged, a shift from its previous “fear” status. Treasury yields dropped notably, reaching their lowest point since August, post the Fed’s forecast.

Amid these market shifts, oil prices climbed over 1% following the Fed’s hints at future rate cuts, bringing relief after a period of decline due to Fed concerns.

However, Etsy faced a setback, with a 2.2% decrease after announcing an 11% staff reduction due to a challenging economic environment. Tesla, despite losing consumer tax credits and issuing a massive recall of over 2 million vehicles, saw a nearly 1% increase in its shares.

Conversely, Pfizer experienced a 6.7% decrease after offering guidance below market expectations for 2024.

The Fed’s decision has undeniably buoyed the market to new heights, reflecting optimism amidst economic shifts and signaling potential trajectories for future stability and growth.