Dow Jones Industrial Average climbs on Treasury declines, rate cut hopes

• The Dow Jones extended a bullish recovery on the back of rate cut hopes.
• US inflation remains above targets, but pressures may be easing slightly.
• Treasury yields are getting cheaper and rate cut bets are back on the rise.

The Dow Jones Industrial Average (DJIA) added over a full percentage point in value on Friday, climbing around 500 points and vaulting back over 43,500 as market expectations for further rate cuts increased. Tech stocks are back on the rise as traders pile back into their risk appetite ways, and the banking sector is broadly climbing after a wide swath of better-than-expected earnings reports from major investment banks this week.

The inauguration of US President Donald Trump will take place next week, on Monday, when US markets will be shuttered for Martin Luther King Day. Equities are poised to continue the exuberance train for the time being. Trump’s election night win in November sparked a massive rally as traders eyed a potential future with deregulation, lower taxes, and higher equity valuations.