Wall Street Soars as Anticipation Mounts for Key Fed Decision; S&P 500 Nears Record High | Market Breakthrough News

Wall Street Rallies Ahead of Key Fed Decision

Date: Sep 17, 2024 | 10:28 PM IST

Wall Street’s main stock indexes surged on Tuesday, with the S&P 500 reaching a record high during intraday trading. This rise comes ahead of a critical Federal Reserve interest-rate decision, buoyed by encouraging economic data that eased concerns about a sharp slowdown in the US economy.

The S&P 500 hit 5,670.81 early in the session, recovering from a significant selloff in late July and early August triggered by rising unemployment. The Commerce Department reported unexpected growth in retail sales for August, with online purchases compensating for declines in auto dealerships, indicating a stable third-quarter economy.

Microsoft significantly propelled the S&P 500, climbing 1.0% after announcing a $60-billion share buyback and a 10% dividend increase. Other tech leaders like Alphabet and Tesla gained 0.70% and 2.10%, respectively, while Nvidia saw a 0.30% increase, lifting the broader chip index by 0.94%.

Simultaneously, the Dow Jones Industrial Average traded at a record high, and the Russell 2000 outperformed with a 1.7% rise. By 11:35 a.m. ET, the Dow was up 153.14 points to 41,775.22, the S&P 500 added 22.75 points to 5,655.84, and the Nasdaq Composite climbed 115.76 points to 17,707.88.

Consumer Discretionary led gains among the S&P 500 sectors with a 1.2% rise, while Healthcare stocks fell 0.40%. The Fed’s imminent two-day meeting has traders betting on a 59% likelihood of a 50-basis-point rate cut, with a 25-bps reduction now at 41%, down from 66% last week.

Paul Nolte of Murphy & Sylvest noted the market’s strong performance could influence the Fed’s decision. September typically is a weak month for US equities, but the S&P 500 is up 0.14% so far this month.

Intel soared 6.20% after securing Amazon’s cloud unit for AI chips, while Amazon gained 1.70%. Advancing issues outnumbered decliners nearly 3-to-1 on the NYSE and 2.48-to-1 on the Nasdaq. The S&P 500 recorded 47 new 52-week highs with no lows, while the Nasdaq had 113 new highs and 47 new lows.

Original Story https://www.business-standard.com/markets/news/wall-street-rises-ahead-of-key-fed-decision-s-p-500-nears-record-high-124091701347_1.html
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