Dow notches another record high amid continued rate-cut hopes

• US stocks climbed Tuesday, with investors adding to the year-end rally.
• The Dow closed at a record high for another trading session.
• The S&P 500 neared its all-time high of 4,796, which it hit in January 2022.

The Dow closed at a record high for another trading session Tuesday, while the S&P 500 finished just below its own all-time high.

The broad market index is now just 0.5% below the 4,796 record level it reached in January 2022. Equities have surged since the Fed signaled last week that three interest rate cuts are on the table for 2024.

San Francisco Fed President Mary Daly further stoked those hopes, as she told the Wall Street Journal that it's appropriate for the central bank to begin considering rate cuts in 2024. 

Meanwhile, data out Tuesday showed November housing starts unexpectedly rose 14.8% from the prior month to reach an annual level of 1.56 million.  

Here's where US indexes stood as the market closed at 4:00 p.m. on Tuesday: 

• S&P 500: 4,768.37, up 0.59%

• Dow Jones Industrial Average: 37,557.92, up 0.68% (251.90 points)

• Nasdaq Composite: 15,003.22, up 0.66%

Here's what else is going on: 

• BlackRock's proposed bitcoin ETF will now allow cash redemptions after pushback from the SEC.
• A trader said no matter how much OPEC cuts oil production, other countries will fill the hole. 
• The biggest risk to the stock market in 2024 may be a liquidity shock from the Fed.
• An S&P 500 fund just saw its biggest single-day inflow ever for an ETF after the Fed signaled rate cuts.
• A BlackRock bond guru warned not to put all your faith in the Fed for a March 2024 rate cut.
• Investors will swap dollars for stocks if interest rates fall next year, a strategist said.
• Mergers and acquisitions have dropped more than 30% to fall short of $3 trillion for the first time in 10 years.

In commodities, bonds, and crypto: 

• Oil prices climbed, with West Texas Intermediate up 1.53% to $73.58 a barrel. Brent crude, the international benchmark, moved higher 1.81% to $79.38 a barrel.
• Gold edged higher 0.61% to $2,053.00 per ounce.
• The 10-year yield moved lower 3 basis points to hover at 3.928%.
• Bitcoin climbed 1.14% to $42,318.

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