World markets powered higher on Friday after the Dow Jones Industrial Average climbed to another record close on excitement that the Federal Reserve might cut interest rates several times next year, according to the Associated Press.
The futures for the S&P 500 and the Dow were up 0.2%. Oil prices also gained.
On Thursday, the S&P 500 gained 0.3% to pull within 1.6% of its all-time high set early last year. The Dow gained 0.4% and the Nasdaq climbed 0.2%.
Stocks have been broadly shooting higher since October on hopes that inflation has cooled enough for the Federal Reserve to not only stop its market-rattling hikes to interest rates but to even begin considering cutting them. Those hopes strengthened Wednesday after the Fed held its main interest rate steady and said the federal funds rate is likely at or near its peak.
Lower interest rates can goose prices for investments and relax the pressure on the economy and financial system. But a reversal by the Fed is not guaranteed: One threat is that the economy stays too hot, which would keep upward pressure on inflation and could force it to keep rates high for longer than expected.
