Investing.com - Following a turbulent end to 2018, U.S. stocks have had a stellar run this year with the benchmark S&P 500 and blue-chip Dow Industrials up about 11%, and the tech-heavy Nasdaq rising around 13%.
The rally has been helped in the most part by a recent dovish shift from the Federal Reserve, which last month sent the clearest signal yet that its three-year drive to tighten monetary policy is close to an end.
The U.S. central bank pledged to be patient with further interest rate hikes following its late January policy meeting, as risks to the economy mount. It also said it could alter the pace of its balance sheet reduction "in light of economic and financial developments".
The Fed's dovish tilt marks a significant change to the stance it stressed only a few months ago, leading to some in the market to believe that a steep drop in stocks late last year forced Fed Chair Jerome Powell to cave and side with the bulls.
The dovish shift came as President Donald Trump repeatedly attacked the Fed for raising rates.
Trump, Powell and Treasury Secretary Steven Mnuchin had dinner at the White House together on Feb. 4, which was described as "very casual".
"Chairman Powell gave the president an overview of the economy and what he was seeing, which was quite strong and consistent with his public comments," Mnuchin said.
"It was, I think, a terrific meeting for them to get to see each other. They had not met since Jay Powell was put into office," Mnuchin added.
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