Dow rallies more than 500 points to record, closes above 37,000 for the first time
Source: CNBC
The 30-stock Dow added 512.30 points, or 1.40%, to close at 37,090.24. This marks the first time the benchmark closed above the 37,000 mark — exceeding a previous record set in January 2022. At its session high, the Dow touched 37,094.85.
The S&P 500 jumped 1.37% to finish the session at 4,707.09 — crossing 4,700 for the first time since January 2022 — while the Nasdaq Composite climbed 1.38%. to 14,733.96. All three major averages hit fresh 52-week highs.
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 were 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.
Read more: https://www.cnbc.com/2023/12/12/stock-market-today-live-updates.html
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EarthFirst
(3,868 posts)
COL Mustard
(7,682 posts)My retirement account is up more than 20%.
Inflation is still here, but it's at 3%, down from 9% earlier this year.
Unemployment has been less than 4% for years now.
But the economy sucks, apparently, and of course it's all Joe's fault. I'll take this kind of economy just about any day. But I'd like it to be spread evenly and fairly so everyone participates. And that's not Biden's fault.
doc03
(38,506 posts)paying over asking price for cars and homes. The USA produced a record amount of oil last year. Real income
is rising more than inflation. Wall Street is at record highs and people say the economy is
bad.
Shermann
(8,976 posts)Walleye
(42,802 posts)
Johnny2X2X
(23,504 posts)That’s what some right winger told me late last year. Said, “ go into cash investments! The economy is crashing and a severe recession is hitting in 2023. DOW could hit 15,000 and that’s when you get back in!”
LOL. DOW up almost 30%. He’s sat in cash investments earning next to nothing while I saw my 401K hit all time highs.
Don’t let politics dictate your money.
doc03
(38,506 posts)under Obama. But MAGAts think it was better under Trump , they think Biden was president in 2020.
Mr.Bill
(24,906 posts)They cashed out when the stock market was at 6,800 and bought ammo. Brilliant.
Johnny2X2X
(23,504 posts)I mean, I know really smart people who fall for the doom and gloom on FOX News and are missing out on all the gains. They might not even be MAGAs, but they hear all the doom and gloom and react.
They hear thinks like Warren Buffett has a lot of cash and then hear FOX says it’s because he’s hoarding it for the crash. They have no clue what Warren Buffet is thinking, but he’s not betting on a broad crash, he’s probably got his eye on a few companies that these people have no clue even exist.
And they aren’t really mad they lost out. Because they don’t understand opportunity cost, they’re mad because they want to be right and they want to see Trump be right. Trump predicted an economic collapse if he wasn’t reelected and right now we have one if the best economies in history. Maybe they had $100k in their 401K and instead of having $140K now they have $115K, they’ll never figure thru lost $25K.
COL Mustard
(7,682 posts)How smart are they, really?
ashredux
(2,787 posts)
PoindexterOglethorpe
(28,180 posts)Buy good stocks, bonds, funds, whatever. And stay in. Do not day trade. Do not buy and sell. Pay enough attention to know if you should move from one bond, fund, or stock, to another. Or find a good investment advisor, which is what I have. His steady hand has me better off than ever. He got me into a couple of annuities several years ago, which provide steady income, along with SS, a small pension, and money I take every month from the investment portfolio.
On our most recent chat (he connects with me quarterly, more if he or I want to) he said he was looking at a strong rise in the stock market next year. Looks like he was right, and that rise is simply happening sooner.
IronLionZion
(50,096 posts)it's always good to be well diversified and rebalance regularly. The people who put it all in gold probably got screwed the hardest.
Johnny2X2X
(23,504 posts)Some stocks and bonds. Takes the risk out of it while still realizing most of the gains of a hot market. You simply won’t be the markets monkeying around on your own in the long run.
Calista241
(5,632 posts)Interest rates were soaring, and savings accounts were / are still paying 5% interest. Warren Buffet has pulled billions out of stocks this last year to soak up these high interest rages.
What has happened this last year has basically never happened before. We've had an inverted yield curve for nearly a year. It's still inverted. This is the first time, in the modern economy, that an inverted yield curve has not yet led to a recession.
Johnny2X2X
(23,504 posts)One where inflation was caused by a global pandemic. So there was a ton of risk and unknowns. But I think the US economy is incredibly strong right now and that's why we're seeing things steam along despite inverted yield curves and persistent but moderate inflation.
Warren Buffett is taking advantage of high rates of savings, but he's also likely more liquid because he has sp[ecific opportunities in mind. That guy didn't get that rich by sitting risky markets out, he's got a plan, and that plan isn't 5% interest on his $28 Billion. But predicting what Warren Buffett is thinking has never been something anyone's been very good at.
But I do know that Joe Biden's entire philosophy during these unprecedented economic times has been that the economy works best when working people have jobs and are making better wages. Everything he has pushed has been to help working people with the thought that if he does that, the eonomy will eventually benefit. And I think we're seeing some of the fruits of that right now.
Tomconroy
(7,611 posts)Yavin4
(37,182 posts)My guess is that's because school is starting and tuitions are due. Folks need the cash.
Prairie Gates
(6,502 posts)
doc03
(38,506 posts)Johnny2X2X
(23,504 posts)I visit some bipartisan sites that are discussing this and the RWers are posting 1500 word diatribes on how the administration was the lone cause of inflation and how terrible inflation was, blah blah.
Inflation was a global problem, the US handled it better than almost all of our peers did. There are still modern economies with 6%+ inflation and economies that are shrinking while we sit here at full employment, an economy that grew 5.2% last quarter, with inflation falling to 3.1% over the last year, wage growth above 4%, and stock markets that are breaking records.
The campaign point for the GOP is going to turn into, 'Remember how bad inflation was a few years ago?"
Evolve Dammit
(21,278 posts)that. My parents lived through the Depression and I don't have the confidence that others might. I consider it all legal gambling, and I was in for 30 years. Not as a senior.
PoindexterOglethorpe
(28,180 posts)Because cash alone simply loses value to inflation. Even bonds don't match inflation.
It is NOT legal gambling. To think that way tells me you simply don't understand how the stock market works in modern times, meaning since the Great Depression. Prior to 1929 there was a lot of chicanery and market manipulation, but that was brought to a screeching halt in the 1930s, by none other than Joe Kennedy.
Heck, as a senior I really need to be in the market. I'm 75, could easily live another 20 years, and without the growth the market provides, I'd be living on the street in 15 years. Which also brings up the point that most people will live longer than they think they will.
LudwigPastorius
(13,606 posts)I have 9 years to go, so right now the number is at 44% and decreasing by 3% each year.
PoindexterOglethorpe
(28,180 posts)You will nearly almost zero growth at that rate. Most advice is to stay 60% in stocks, 40% is bonds, even at age 70. Again, bonds do not keep up with inflation, as wonderfully secure and stable as they are. Do a bit of research, and you may change your mind about your investment mix.
Exactly what stocks or funds matters a lot. I am not about to make specific suggestions here. This is why I have a financial advisor. He has me in a very balanced mix of funds. I am more financially secure than ever, thanks to him.
ashredux
(2,787 posts)Putting in a good portion of your portfolio into safe, interest-bearing instruments that are yielding 5% at this time is a good long-term move
PoindexterOglethorpe
(28,180 posts)I also get income from a couple of annuities my advisor got me into some eleven years ago now. Interestingly, they have both actually decreased in net value in recent years, which seems to be because they are invested VERY conservatively. Meanwhile, my monthly payment can never decrease, can only increase, and if I actually live long enough to zero out the value, I will still get that monthly payment. And if I day with money left in, guess what? My heirs get what's left over.
Evolve Dammit
(21,278 posts)PoindexterOglethorpe
(28,180 posts)And it's important to understand that over time the stock market is up. Yes, sometimes it is down, by if you've invested well, you're best off staying in.
I can tell you that even with steady withdrawals in retirement (I'm 75) my net worth is still a bit higher than it was ten years ago. That would not be the case if most of my investments was in bonds.
ashredux
(2,787 posts)PoindexterOglethorpe
(28,180 posts)The advice about going mostly or even all to bonds is seriously outdated, and is not made any more.
Especially as we live longer. As a 75 year old woman I will likely live another 13 years. If I make it to 88, I may well live another 5 years. And so on. Look at this: https://www.annuityadvantage.com/resources/life-expectancy-tables/
TeamProg
(6,630 posts)IronLionZion
(50,096 posts)because conservative media kept telling them that Bidenomics is bad. 
NoMoreRepugs
(11,670 posts)if you’re willing to spend time and do your due diligence it can be immensely profitable and dare I say FUN?
LetMyPeopleVote
(171,402 posts)republianmushroom
(21,658 posts)Good job, Joe.
Aussie105
(7,299 posts)You will notice a lot of other countries are on the up and up too.
The UK, NZ and Australian markets are on an upsurge too.
Probably more, if you care to look.
I don't know why this surge of optimism is happening, but attributing it to Joe and Bidenomics is probably too simplistic a view.
Seeing I'm benefitting at the moment, I don't mind though.
hibbing
(10,475 posts)As much as Republicans are viewed by many as masters of the economy, I recall seeing a Forbes article that shows the market does better under Democratic administrations.
Peace
Happy Hoosier
(9,136 posts)