Dow Jones Hits Record High Amid Fed Rate Decision Anticipation

The Dow Jones Industrial Average (DJIA) surged to a historic peak of 48,040.64 on Wednesday as investors braced for the Federal Reserve's impending interest rate decision. Market consensus points to a 25-basis-point cut, potentially lowering rates to a 3.75%-4.00% range—marking the second reduction this year.

Uncertainty looms as critical inflation and labor data remain delayed due to the ongoing government shutdown, now in its 29th day. "Without official jobs data, policymakers will rely on alternative sources that likely won't contradict their rationale for easing," noted former Fed official Esther George in a Yahoo Finance interview.

Geopolitical developments added complexity to market dynamics. President TRUMP announced a U.S.-South Korea trade agreement during the APEC Summit, featuring tariff reductions on Korean autos and a $350 billion investment commitment from Seoul. The deal includes $200 billion in phased cash investments and a $150 billion shipbuilding partnership.