Fed pivots, stocks rip

Widely expected and much-anticipated, the U.S. Fed announced on Wednesday that it will hold interest rates again, reflecting easing inflation. However, the street was surprised when Fed Chair Jerome Powell signaled that the American central bank will pivot in 2024 by starting to cut interest rates. Though he offered few details, the street hailed the news and the tone of his press conference by unleashing a sharp rally on both sides of the border.

All the major U.S. indices jumped around 1.4%, but the Dow closed at an all-time high above 37,000. Apple made a new all-time high after rallying 1.7%. Similarly, the Bank of America rose 4.1% and Albemarle soared 9.78%. However, Pfizer sank nearly 7% on a weak outlook. Meanwhile, the U.S. 10-year yield nearly fell below 4%. Bitcoin rebounded 3.2% to US$42,800.

The Fed’s news sent Canadian dividend stocks flying, led by real estate, materials and utilities, and pushed the TSX 1.96% higher after days of recent weakness. Influential names were TD up 1.89% and Cenovus popping 2.2%. Meanwhile, Canadian Apartment REIT jumped 5.39% and Northland Power 4.59% while beleagured First Majestic Silver soared 10.8%. WTI crude rose 1.7% to nearly $70 a barrel.

🍎 Apple Inc (AAPL-Q) +1.7%

🏛 Bank of America (BAC-N) +4.11%

⛏ Albemarle Corp (ALB-N) +9.78%

💉 Pfizer Inc (PFE-N) -7%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +3.2%

🅱 Toronto Dominion (TD-T) +1.89%

🛢 Cenovus Energy (CVE-T) +2.2%

🏛 Canadian Apartment Properties (CAR.UN-T) +5.39%

💡 Northland Power Inc (NPI-T) +4.59%

🥈 First Majestic Silver (FR-T) +10.8%