US stock market reaches new annual high: The Dow Jones closes at 36,245 points

US stock market reaches new annual high: The Dow Jones closes at 36,245 points

According to a report by www.deraktionaer.de, the American stock market reached a new annual high on Friday, with the Dow Jones finally passing the 36,000 point mark. This is the highest level in almost two years.

US stocks accelerated their upward trend at the end of the week, although US Federal Reserve Chairman Powell signaled that monetary policy could be tightened further and described lower interest rates as premature. However, Powell's speech could no longer spook markets as he still sees a chance that the US economy will not slip into a recession.

These positive developments were driven by three main drivers: inflation, an apparent Fed retreat and a gradual slowdown in the economy. Bank of America expects the S&P 500 to reach 5,000 by the end of next year as Wall Street has already passed a point of "maximum macroeconomic uncertainty." Analyst Derek Harris emphasized that markets have already "capped significant geopolitical shocks" and that the Federal Reserve has so far helped contain inflation by raising interest rates in 2023.

This positive outlook could continue to help US stock markets remain positive and potentially reach further record highs. The easing of the geopolitical situation and confidence in monetary policy could be key factors for further growth in the stock markets.