S&P 500 Closes Near $6,000, With Powell Helping Stocks Surge

Stock markets continued to surge again today, after the massive gains yesterday, with the S&P 500 getting really close to the 6,000 level. The Trump trade is positive for US stock indices, while FED’s Jerome Powell made some dovish comments, which added further to the USD weakness, and helped stock markets further late in the US session.

S&P 500 Chart Daily – Within Reach of 6,000

After surging again today, the S&P and NASDAQ closed at all-time highs, reflecting continued upward momentum in US stock indices. The Dow Industrial Average ended slightly lower, despite posting its largest percentage gain since November 10 (up 3.57%), as the FED’s dovish stance supported risk sentiment and boosted risk assets.

At his press conference, Fed Chair Jerome Powell emphasized the concept of rate recalibration, reiterating the Fed’s dedication to achieving maximum employment and price stability. He highlighted that the Fed is actively monitoring risks on both sides of its mandate. Powell also acknowledged that recent hurricanes and strikes impacted November’s job data and noted that with a less tight labor market, inflationary pressures have eased. This dovish tone contributed to a decline in the USD during the US session, which in turn supported further gains in stock markets.

In the third quarter, US labor costs rose by 1.9%, exceeding the 1.0% forecast, with a previous quarter’s revision up to 2.4%, which is favorable for equities. Productivity also increased by a solid 2.2%, compared to the previous quarter’s 2.1% gain, providing further support for the positive sentiment in equity markets.

Closing Prices for Main US Indices

S&P 500 Live Chart

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Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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