Markets climbed after investors watched Fed President Jerome Powell unveil the median target Federal Funds rate of 4.6% by year-end. A day later, stocks were still hitting all-time highs: if the market loves anything, it's predictability.
The preliminary numbers showed that the $S&P 500 Index (.SPX.US)$ Index climbed past a record of 0.32% to its 20th record close this year. The $Dow Jones Industrial Average climbed 0.67% to a record close, and the $Nasdaq Composite Index climbed 0.20%, toward an all-time high with preliminary numbers.
All eyes watched the Reddit IPO launch in public trading shortly after 1:20 p.m. EST. The stock started above the target $34/share price at $47/share and jumped 60%.
FOMC Keeps Things The Same
Thursday, the market climbed after the Federal Open Market Committee decided rates should remain unchanged at 5.25% - 5.5% Wednesday. Federal Reserve President Jerome Powell held a press conference to describe the dot plot projection of where rates will be at the end of the year.
Powell said, "If the economy evolves going forward, the appropriate federal funds rate level will be 4.6% at the end of this year.
The dot plot shows the FOMC member's prediction for the appropriate range to target for the Federal Funds Rate. The dot plot shows median rates coming down to 4.6% this year and down to 2.5% by 2026, and Powell said rates were unlikely to return to the pre-pandemic 0% rate.