Fed's Signal of Rate Cuts Sparks Stock Market Rally

U.S. stock futures rose as the Dow Jones Industrial Average aimed to extend its record-setting rally, with Dow futures up 0.25%. The major averages are on track for their seventh consecutive positive week, with the Dow up 2.8%, the S&P 500 up 2.5%, and the Nasdaq Composite up 2.5% this week. Wall Street continues to be buoyed by the Federal Reserve's indication of three interest rate cuts in 2024 and stronger-than-expected November retail sales data. Meanwhile, China reported its fastest industrial expansion in nearly two years, but retail sales growth missed estimates, highlighting an uneven recovery. Hong Kong stocks surged over 3%, leading gains in Asia, while Japan's factory activity contracted for the seventh straight month in December. China's central bank boosted liquidity injections and held rates for short- and medium-term loans, and investor pessimism reached its lowest level since 2017, according to the AAII weekly survey.