US stocks picked up on Tuesday, extending a winning streak as pro-rate-cut Fedspeak and China’s launch of aggressive stimulus lifted market spirits.
Stocks initially rallied following the announcement before paring those gains. The tech-heavy Nasdaq Composite (^IXIC) popped about 0.5% while the S&P 500 (^GSPC) rose more than 0.1%. The Dow Jones Industrial Average (^DJI) was up nearly 0.1%.
Stocks have shown momentum as the prospect of a Federal Reserve interest rate-cutting campaign and an apparently resilient economy spurs confidence in a coming rally. Some on Wall Street now forecast the S&P 500 will hit 6,000 this year — a big milestone less than 5% away.
The Fed’s jumbo rate cut last week kicked off the rally, and on Monday, several policymakers hinted the door is open for more big moves. On Tuesday Fed governor Michelle Bowman, explained she dissented to last week’s half a percentage point interest rate cut because “upside risks to inflation remain prominent.”
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Also boosting the mood was China’s launch of a raft of stimulus measures, its biggest since the pandemic. Global stocks and oil (CL=F, BZ=F) rallied after the PBOC’s move to revive a slowing economy and support markets.
On the corporate front, beleaguered plane maker Boeing (BA) took what it called a “best and final offer” directly to striking factory workers after their union balked at putting it to a vote.
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