Dow crosses 37,000 for the first time, soaring after the Fed signals rate cuts ahead

CNBC.com ^ | 12/13/23 | Brian Evan’s, Sarah Min

[chuck allen]

The Dow Jones industrial Average jumped to a record Wednesday as the Federal Reserve signaled it would cut rates several times next year, satisfying investors who hoped the central bank would finally start to acknowledge the slowing trend of inflation with a less-aggressive monetary stance.

The 30-stock Dow added 374 points, or 1%. At its high of the day, the Dow touched 37,057.81 to surpass 37,000 for the first time and exceed its previous all-time high in January of 2022. The S&P 500 jumped 1% with bank and real estate shares leading the way, while the Nasdaq Composite climbed 1%.

The central bank held the benchmark overnight borrowing rate steady in the 5.25% to 5.5% range as expected, but more importantly it forecast three rate cuts in 2024, which was more than it had previously indicated. Investors have been increasingly hoping for the Fed to give a clearer signal that it would start cutting rates next year with recent inflation data easing.

[cuban leaf]

The Dow is not up. The dollar is down.

[cuban leaf]

The way those auctions work is that the highest bidder determines the price for all bonds (weird but that is how they do it).

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That’s kinda how they do it at normal auctions as well. If they have four of an item and they say you are bidding on one, once someone wins the bid, they ask them if they want all four. If not, they ask who else wants any of the others at that price.

If there are no takers, however, they restart on the remaining unclaimed pieces. I suppose that in a way that happens here too. If nobody else buys, well, they need to adjust the price somehow.😉

[Lakewood]

Bingo.

Dow priced in Gold Jan 20, 2020 = 19.99 (31,186/1560.15)

Dow priced in Gold Dec 15, 2023 = 18.25 (37,090/2032.20)

[Chgogal]

https://usawatchdog.com/biden-still-at-9-or-less-left-kills-x-economic-warning-signs/

“ The economic warning signs keep flashing bright red. Two big warning signs on the road to financial perdition are China and other central banks continuing to buy physical gold at record amounts. The other big warning sign comes in the form of countries shunning US Treasury debt. This makes it very difficult, if not impossible, to finance our exploding debt. What could go wrong?”

[cgbg]

I have read many articles that say the same thing—but when you dig below the headlines and go into the numbers it is a lot more complicated.

The dollar will die eventually—but I think it will take a long time—and almost every other currency on the planet will circle the drain first.

Gold is overcollateralized by fraudsters.

Crypto is overrun by fraudsters.

The whole world of finance is scammers scamming other scammers.

If you want safety pet a friendly dog.

;-)