US Stocks Close Out Quarter with Fresh Records as Fed Chair Vows to Support Economy
The final trading day of September and the third quarter saw US stocks reach new heights, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all closing at record levels. The S&P 500 rose 0.4% to a new high, while the Nasdaq Composite gained nearly 0.4%. The Dow Jones Industrial Average finished just above the flatline, securing its latest all-time high.
The Federal Reserve’s decision to cut interest rates and signs of resilience in the US economy have boosted confidence, leading to three consecutive weeks of gains for stocks. The Dow led the major indexes’ gains over the last three months, up 8.2%, followed by the S&P 500 with a 5.4% gain, and the Nasdaq with a nearly 3% increase.
Federal Reserve Chair Jerome Powell’s remarks on Monday, in which he vowed to do what it takes to keep the economy humming, also lifted spirits. However, his comments on not rushing future rate cuts lowered expectations of another jumbo cut.
Investors are now bracing for the September jobs report, due out on Friday, which will pose an important test for the recent rally. The report will provide insight into the labor market’s pace of slowing and whether the Fed has acted aggressively to protect a healthy economy or to help a flailing one.
In other news, shares of Chevron rose close to 0.6% following the US Federal Trade Commission’s clearance of its $53 billion purchase of Hess Corp. However, the deal still faces a final obstacle in Exxon Mobile’s challenge.
Some of the top-performing stocks on Monday included Stellantis, which tumbled 14% after issuing a stark warning about its North American operations, and Carnival, which fell 3% despite beating analyst expectations for the third quarter. Meta, on the other hand, rose nearly 1% following an analyst upgrade.
The Real Estate sector led the S&P 500 on Monday, rising more than 0.5%, while the Materials sector was the biggest laggard, falling 0.8%.
A slew of labor market data, including the September jobs report, will be in focus for investors this week. Updates on activity in the services and manufacturing sectors will also catch attention as market participants attempt to discern how quickly the US economy is slowing.
Wall Street strategists argue that a stronger-than-expected jobs report would likely be seen as a positive for stocks, while a bad report could have the opposite impact.
Leave a Reply