Despite the rate hike by the Federal Reserve, some positive news about inflation and growing prices of finished goods and services in the economy pushed the Dow to another new high, prompting investors to wonder if it will cross the 25,000 marks by Christmas.
The narrowing gap between job openings and hires gave the market a leg up early on Monday. By the time the Federal Reserve announced their expected rate increase on Wednesday, markets had already priced in that bit of information and moved on to celebrate some positive news about the CPI and PPI figures as both grew at 0.4% in the previous month.
In the end, as Republican leaders in the House and Senate announced an agreement about the final bill regarding the proposed tax cuts, it also fueled the bullish momentum in the equities markets.
Be sure to check out our previous week’s edition here, in which markets were spooked by a flattening yield curve.