by Caroline Valetkevitch and Noel Randewich

NEW YORK (Reuters) – The New York Stock Exchange ended higher on Thursday, with the Dow Jones reaching a historic high for the second consecutive session, amid optimism over interest rates after the Federal Reserve The American Fed (Fed) on Wednesday suggested a drop in borrowing costs next year.

The Dow Jones index gained 0.43% to 37,248.35 points.

The broader S&P-500 gained 0.26% to 4,719.55 points.

The Nasdaq Composite advanced 19% to 14,761.56 points.

Investors closely monitored the 10-year US Treasury curve, whose yield fell below 4% for the first time since early August following the Fed’s statement.

Noting that the market was in overdrive, Quincy Crosby, chief strategist at LPL Financial in Charlotte, said a “consolidation or pause was expected, especially after yesterday’s jump.” Furthermore, she added, “if the market welcomes lower interest rates, it may wonder about the decline in bond yields below 4%”, while investors study the economic horizon . The Fed left interest rates unchanged on Wednesday, as expected, while Chairman Jerome Powell said the central bank’s monetary tightening cycle was nearing its end or had already reached it, amid a decline in inflation. Powell also noted discussions about lower credit costs.

Data released Thursday by the U.S. Commerce Department showed that U.S. retail sales rose unexpectedly in November, helping to ease concerns about a recession.

Some major sectors of the S&P-500 that have underperformed this year advanced during the session. Six sectors finished in the green, led by energy, up 2.94%, and real estate, which gained 2.62%.

On the value side, note, Apple ended up slightly after reaching a record during the session. Other technology giants advanced, such as Tesla, +4.9%, and Nvidia, +0.5%. Adobe lost 6.35% after communicating quarterly and annual revenue forecasts below expectations.

( Jean Terzian)

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