The roller coaster of the US stock market saw a robust open today, following suit to a number of record-breaking highs just the day prior. As the market fluctuates, however, the overall picture depicts a steady upward progress that has seen the Dow and S&P 500 hitting all-time highs. The Nasdaq too is enjoying an upswing, experiencing a 40% surge for the year.
This substantial growth has had a direct and positive impact on the average 401K that has inflated by nearly $13,000. Alongside these financial gains, the average American is enjoying a respite in gas prices that fell overnight to a national average of $3.09 a gallon, which represents a drop of 10 cents from the previous week and 35 cents less than a month ago.
Further good news came from the housing market as mortgage rates drop yet again. Despite being stubbornly high in recent times, the past seven weeks have seen consistently declining rates, now falling below 7%. Although not as low as the sub-3% rates witnessed three years ago, the downward trend bodes well for many.
Experts enthusiastically remark on this December, terming it a bearer of financial optimism against the presumed expectations of an economic recession. Despite a volatile year, the economy has showcased resilience with low unemployment, a GDP at five percent in the third quarter, and soaring stock markets.
Much of this growth, surprisingly, comes from the Federal Reserve. Once dubbed as the Grinch for spiking interest rates and causing alarm amongst consumers and investors, the Fed's new outlook on cooled inflation may lead to cuts in interest rates as soon as March of the coming year. Experts believe this could bring good news for Wall Street and Main Street.
While there remains a cost of living crisis, experts feel it might be getting progressively better. The tangible signs of the rising economy, from increasing 401Ks, falling mortgage rates, to lowering gas prices, could all serve to alleviate public perception of the economic downturn. Major shifts in the economy lay the foundation for a more stable future.
