(MENAFN) Last Friday marked another milestone for Wall Street as the main indices closed at record highs for the second consecutive day. The Dow Jones index notably approached the 40,000 level, reflecting the overall bullish sentiment. Throughout the week, indices experienced gains, with the Standard & Poor's 500 index posting a notable increase of approximately 2.3 percent. Year-to-date, this index has seen a robust growth of around 9.5 percent. The Dow Jones index recorded its strongest weekly rise since December, climbing by 2 percent, while the Nasdaq outperformed both, boasting a 3 percent increase.
These remarkable upward trends in the markets are fueled by widespread optimism, largely stemming from the Federal Reserve's indication of its commitment to implementing three interest rate cuts later this year. This assurance comes amidst concerns about inflation, which have been on the rise and have sparked fears among investors. Jerome Powell, Chairman of the Federal Reserve, addressed these concerns in a press conference, stating that despite the recent uptick in inflation, the Fed's planned trajectory remains unchanged. Powell highlighted that the inflation data for January and February did not deviate from the Fed's expectations, with inflation projected to gradually decline towards the target rate of 2 percent, despite facing certain challenges. Looking ahead, the Fed anticipates a growth rate of 2.1 percent in the quarterly report, with inflation forecasted to continue its downward trajectory, albeit at a slower pace.
Overall, the recent record highs in Wall Street indices reflect the prevailing optimism in the markets, underpinned by the Federal Reserve's commitment to managing interest rates and addressing inflation concerns. Investors remain hopeful for sustained growth, buoyed by positive economic indicators and the Fed's proactive stance in navigating current challenges.
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