Time for the Santa rally? U.S. stock market futures extend post-Fed swing higher

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Post-Fed upswing in stocks looking set to continue

What’s happening On Wednesday, the Dow Jones Industrial Average DJIA, +1.08% rose 383 points, or 1.08%, to 35927, the S&P 500 SPX, +1.63% increased 76 points, or 1.63%, to 4710, and the Nasdaq Composite COMP, +2.15% gained 328 points, or 2.15%, to 15566.

“Based on asset price moves during the meeting and after, fear ahead of the FOMC meeting was probably even more exaggerated than we thought,” said Steve Englander, head of global G10 currency research and North America macro strategy at Standard Chartered. Mike Kramer of Mott Capital Management attributed the stock-market rise to the decline in volatility. “The rally in stocks was purely driven by the move lower in the VIX VIX, -4.35%, as implied volatility levels drop. We see this often these days,” he said.

 

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