Wall Street close higher with Dow Jones surging 400 points

US stock indices gained ground on Tuesday despite calm trading, with the gains expanding in a truncated session before Christmas. 

The Federal Reserve decided to cut interest rates by 25 basis points last week after two consecutive rate cuts at previous meetings. 

The Fed hinted at a slowed down pace of interest rate cuts in 2025 after revealing in its future outlook a total of only 50 basis points of expected interest rate cuts next year as inflation continues to persist.

Trading is expected to be weak this week with Wall Street closing early today and shutting down tomorrow. 

Many stock and bond markets are closed in Europe as well today and tomorrow for the holidays. 

On trading, Dow Jones rallied 390 points to 43,297 points, with a session-high at 43,297 points, and a low at 42,871 points.

S&P 500 rose 1.1%, or 66 points to 6040 points, with a session-high at 6040 points, and a low at 5981 points.

NASDAQ rallied 1.3%, or 266 points to 20031 points, with a session-high at 20031 points, and a low at 19813 points.