Wall Street resumed its surge on Tuesday, ignoring policymakers' attempts to temper expectations for Federal Reserve rate reduction.
The Nasdaq 100 reached a new high, while the S&P 500 gained 0.6%, closing in on the benchmark's all-time high. Atlanta Fed President Raphael Bostic's prediction that the US central bank would only cut rates twice in 2024 - well below traders' expectations for at least five cuts—did little to dampen market optimism.
Bond yields on the US 10-year, a proxy for mortgage rates, fell to around 3.93%, while the rate on the policy-sensitive two-year stuck around 4.44%.
Traders were unconcerned by a 14.8% increase in new US home construction in November, as builders continued to benefit from a restricted supply of existing home sales, according to government data released Tuesday.