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Wall Street Extends Rally as Yen Weakens to One-Month Low After BOJ

Ambiguous guidance from Japan’s central bank kept expectations for a wide rate gap.

Overview

  • The Dow rose 183.04 points to 48,134.89 and the Nasdaq added 301.26 to 23,307.62.
  • A softer-than-expected U.S. November CPI reinforced expectations of additional Fed rate cuts next year.
  • Reports flagged that the November CPI may have been distorted by a recent partial government shutdown.
  • The dollar briefly reached about ¥157.78 in New York, the weakest yen level in roughly a month, and traded near ¥157.70–¥157.80 late afternoon.
  • The Bank of Japan delivered another rate increase, and Governor Kazuo Ueda’s comments were seen as offering no clear path for further hikes, helping drive yen selling; Nvidia and Cisco gained while Nike fell.