The Fed held its benchmark interest rate in a range of 5.25%-5.50%, the highest in 22 years, on Wednesday. The inclusion of a company in the Dow Jones Industrial Average does not depend on defined criteria. Instead, an independent Wall Street Journal commission decides whether a share is to be included or excluded. There are no fixed times for reviewing the composition of the index, since changes are only made by the commission as and when they are needed.
Click here for in-depth analysis of the latest stock market news and events moving stock prices. US stocks ripped higher on Wednesday, hitting new 2023 highs, as investors dissected the Federal Reserve’s last interest rate decision of the year. An equity decline that lasted just a few minutes gave way to a rebound that pushed the S&P 500 up more than 1%. Notwithstanding the fact that the consumer price index continued to show signs of “stickiness,” the overall report came only slightly above economist estimates. While that’s not ideal for a central bank trying to get close to its 2% target, the CPI was not a shocker to Wall Street traders dreading another post-inflation rout.
Wall Street further reading
DailyFX Limited is not responsible for any trading decisions taken by persons not intended to view this material. Stocks climbed to a fresh record as the latest inflation figures did little to alter bets the Federal Reserve will cut rates this year — even if officials keep a more cautious stance for now. Also in the Fed’s release was the central bank’s Summary of Economic Projections, which includes central bankers projections for interest rates next year. The Fed now sees 75 basis points of rate cuts coming in 2024, which accounts for one more rate cut than had been projected in September.
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- The shares included in it are weighted according to price; the index level represents the average of the shares included in it.
- US stocks ripped higher on Wednesday, hitting new 2023 highs, as investors dissected the Federal Reserve’s last interest rate decision of the year.
- While that’s not ideal for a central bank trying to get close to its 2% target, the CPI was not a shocker to Wall Street traders dreading another post-inflation rout.
- Like the Swiss Market Index (SMI), the Dow Jones is a price index.
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Historical Prices for Dow Jones
Like the Swiss Market Index (SMI), the Dow Jones is a price index. The shares included in it are weighted according to price; the index level represents the average of the shares included in it.
