Stocks soar after Fed indicates potential rate cuts in 2024

Recap for December 13

• US equity markets hewed close to flat most of the day Wednesday until the Federal Reserve announced it would hold interest rate steady and perhaps would begin easing monetary policy next year. The resulting buying frenzy sent the Dow industrials average above 37,000 points for the first time in history. The Dow Jones Industrial Average soared 512.30 points, or 1.4%, higher to close at 37,090.24, a fresh record high. The Standard & Poor’s 500 advanced 63.39 points, or 1.37%, to close at 4,707.09. The Nasdaq Composite jumped 200.57 points, or 1.38%, to close at 14,733.96.

• Rainy Brazilian forecasts sent soybean futures lower Wednesday. Wheat futures were lower in profit taking in the wake of four-month highs. Corn futures posted their lowest closes since Nov. 29. March corn futures fell 5¾¢ to close at $4.79½ per bu. Chicago March wheat dropped 20¼¢ to close at $6.05¼ per bu. Kansas City March wheat tumbled 24¾¢ to close at $6.32 per bu. Minneapolis March wheat fell 16¢ to close at $7.13½ per bu. January soybeans subtracted 16¼¢ to close at $13.07½ per bu. January soybean meal was down $8.10 to close at $402.20 per ton. January soybean oil pared 0.59¢ to close at 49.83¢ a lb.

• US crude oil prices advanced Wednesday. The January West Texas Intermediate light, sweet crude future was up 86¢ to close at $69.47 per barrel. 

• The US dollar index declined for a second day Wednesday after rising in the sessions bookending the weekend. 

• US gold futures were higher Wednesday. The January contract added $4.50 to close at $1,982.30 per oz. 

Recap for December 12

• Wheat complex futures soared Tuesday on short covering and signs of international demand. Soybean futures declined after touching December highs as traders monitored weather forecasts in top competitor Brazil. Corn futures were higher in short covering. December corn futures added 2¢ to close at $4.62½ per bu; later months were mixed. Chicago December wheat added 15¾¢ to close at $6.07 per bu. Kansas City December wheat jumped 24½¢ to close at $6.51½ per bu. Minneapolis December wheat fell 12½¢ to close at $7.00¼ per bu; later months were higher. January soybeans dropped 12¼¢ to close at $13.23¾ per bu. December soybean meal was down $1.50 to close at $429.20 per ton. December soybean oil fell 0.67¢ to close at 50.39¢ a lb.

• US equity markets closed higher after a report said the Consumer Price Index rose 3.1% in November from a year prior, a slight pullback from October and in line with economists’ expectations. Prices increased 0.1% from the prior month, stronger than the steady reading economists had projected. The Dow Jones Industrial Average added 173.01 points, or 0.48%, to close at 36,577.94. The Standard & Poor’s 500 advanced 21.26 points, or 0.46%, to close at 4,643.70. The Nasdaq Composite jumped 100.91 points, or 0.70%, to close at 14,533.40.

• US crude oil prices declined Tuesday. The January West Texas Intermediate light, sweet crude future was down $2.71 to close at $68.61 per barrel. 

• The US dollar index declined Tuesday after rising the two previous sessions. 

• US gold futures were lower Tuesday. The December contract shed 20¢ to close at $1977.80 per oz.

Recap for December 11

• Weather forecasts indicated the northern half of major commodities competitor Brazil might not be getting enough rain to fully offset drought conditions. That pushed US soybean futures sharply higher Monday. Soybean meal and soybean oil futures also were higher to open the week. Wheat futures were sharply lower in the wake of last week’s rally to four-month highs. Spillover weakness from the wheat complex sent corn futures to their lowest levels this month. December corn futures fell 5¼¢ to close at $4.60½ per bu. Chicago December wheat dropped 23¾¢ to close at $5.91¼ per bu. Kansas City December wheat sank 28¾¢ to close at $6.27 per bu. Minneapolis December wheat was steady at $7.12¾ per bu for a second session; later months were 15¢ to 17¾¢ a bu lower. January soybeans jumped 32¢ to close at $13.36 per bu. December soybean meal was up $6.50 to close at $430.70 per ton. December soybean oil added 0.91¢ to close at 51.06¢ a lb.

• Investors continued to pile into stock of moderately sized companies on Monday, as they had since a lower-than-expected inflation reading last month. The broad-based buying offset declines of 0.8% or more in each of the so-called Magnificent Seven stocks: Apple, Microsoft, Alphabet, Amazon, Nvidia, Tesla and Meta Platforms. The Dow Jones Industrial Average jumped 157.06 points, or 0.43%, to close at 36,404.93. The Standard & Poor’s 500 advanced 18.07 points, or 0.39%, to close at 4,622.44. The Nasdaq Composite added 28.51 points, or 0.2%, to close at 14,432.49.

• US crude oil prices edged higher Monday. The January West Texas Intermediate light, sweet crude future was up 9¢ to close at $71.32 per barrel. 

• The US dollar index opened the week as the previous one closed: with a higher close. 

• US gold futures opened the week on a downswing. The December contract tumbled $20.30 to close at $1,978 per oz on Monday.

Recap for December 8

• Wheat futures declined in profit-taking moves Friday after reaching four-month highs earlier in the week as China continued to buy US supplies. Winter wheat futures posted weekly gains. Soybean futures closed lower after a USDA report estimated Brazilian soy production at 161 million tonnes, down from its November estimate of 163 million, but still the largest crop on record, if realized. Corn futures were lower but ended the week relatively flat. December corn futures fell 2½¢ to close at $4.65¾ per bu. Chicago December wheat dropped 11¢ to close at $6.15 per bu. Kansas City December wheat fell 6½¢ to close at $6.55¾ per bu. Minneapolis December wheat was steady at $7.12¾ per bu; later months were 7¾¢ to 9½¢ a bu lower. January soybeans pared 7¾¢ to close at $13.04 per bu. December soybean meal was down 30¢ to close at $424.20 per ton. December soybean oil declined 0.96¢ to close at 50.15¢ a lb.

• US equity markets posted end-of-week gains, giving the S&P 500 a sixth-straight weekly gain, after a Labor Department report indicated the unemployment rate slipped to 3.7% in November while employers added a seasonally adjusted 199,000 jobs to payrolls. The figure was closer to 169,000 jobs when excluding the effects of autoworker strikes in recent months, the Wall Street Journal said, which was slightly cooler than 180,000 in October. Some analysts felt job growth could continue into 2024, and the report added to optimism that the economy is gliding toward a soft landing.  The Dow Jones Industrial Average jumped 130.49 points, or 0.36%, to close at 36,247.87. The Standard & Poor’s 500 advanced 18.78 points, or 0.41%, to close at 4,604.37. The Nasdaq Composite added 63.98 points, or 0.45%, to close at 14,403.97.

• US crude oil prices rose Friday. The January West Texas Intermediate light, sweet crude future was up $1.89 to close at $71.23 per barrel. 

• The US dollar index returned to an upward trajectory and ended the day with a weekly gain. 

• US gold futures were sharply lower to close the week. The December contract tumbled $31.60 to close at $1,998.30 per oz.

Recap for December 7

• Wheat futures climbed Thursday ahead of the USDA’s Crop Production and monthly supply-demand updates. Markets continued to react to China’s purchase of more than one million tonnes US soft wheat, the biggest one-week sales total to the Asian country since July 2014 and close to the largest weekly amount ever. It was an eighth-straight day of gains for the Chicago March contract. US soybean futures rallied more than 1% Thursday on ideas that Argentina’s new president, Javier Milei, will devalue the currency in the nation, one of the top global producers, when he is inaugurated Sunday. Corn futures were higher ahead of the reports, which were expected to show smaller US and global ending stocks for 2023-24 and smaller corn harvests in Brazil and Argentina. December corn futures added 3½¢ to close at $4.68¼ per bu. Chicago December wheat added 10¼¢ to close at $6.26 per bu; subsequent months were all higher save the July 2025 contract. Kansas City December wheat added 11½¢ to close at $6.62¼ per bu. Minneapolis December wheat was up 5¾¢ to close at $7.12¾ per bu. January soybeans jumped 16¼¢ to close at $13.11¾ per bu. December soybean meal edged up 10¢ to close at $424.50 per ton; the following two contracts were lower while later months posted gains. December soybean oil jumped 1.82¢ to close at 51.11¢ a lb.

• Rising shares of technology companies working in the artificial intelligence space helped pull broader equity markets higher Thursday. Included were Alphabet, AMD, Amazon, Meta, Microsoft and Nvidia. The Dow Jones Industrial Average advanced 62.95 points, or 0.17%, to close at 36,117.38. The Standard & Poor’s 500 added 36.25 points, or 0.8%, to close at 4,585.59. The Nasdaq Composite jumped 193.28 points, or 1.37%, to close at 14,339.99.

• US crude oil prices dipped Thursday. The January West Texas Intermediate light, sweet crude future was down 4¢ to close at $69.34 per barrel. 

• The US dollar index dropped back Thursday on the heels of a three-day rally. 

• US gold futures declined Thursday as the dollar turned lower. The December contract shed 60¢ to close at $2,029.90 per oz.