The Federal Reserve satisfied market expectations on Wednesday by signaling the end of its rate hikes and the possibility of rate cuts in 2024. This news delighted investors, leading to a continuation of the recent equity rally on Thursday. The Fed’s more dovish stance was evident in its cautious approach to inflation, but its forecast suggests a potential 75 basis points of rate cuts next year. Market reactions included a surge in interest rate-sensitive assets, such as small-cap stocks, and a drop in Treasury yields. European equity markets also experienced gains. On the other hand, the U.S. dollar weakened due to diminished investor support following the Fed’s indication of potential rate cuts. This resulted in a boost for commodities, including gold and oil prices.