People navigated the financial district near the New York Stock Exchange (NYSE) on September 19, 2024, in New York City. Following last week’s interest rate reduction, stock futures experienced a modest rise on Monday. The Dow Jones Industrial Average closed at a record high, spurred by enthusiasm over the Federal Reserve’s decision.
Futures linked to the 30-stock index increased by 26 points or 0.1%, with S&P 500 and Nasdaq 100 futures each advancing by 0.2%. This upswing follows a victorious week on Wall Street, driven by the Fed’s choice to cut interest rates by 50 basis points—a move not seen in four years. Despite some initial market volatility, stocks rallied strongly post-announcement. The Dow closed Friday at an unprecedented high, exceeding 42,000, while all three major indexes gained over 1% for the week, with the S&P 500 also hitting new records.
Ronald Temple, Lazard’s chief market strategist, remarked, “I view this week’s rate cut as a signal that the Fed is willing to act swiftly if needed to counteract potential labor market weakening.” He added, “Though neither 25 nor 50 basis points will significantly alter the short-term economic trajectory, the signal’s importance is clear. Markets responded accordingly, with the S&P 500 reaching a new all-time high.”
Investors are now turning their attention to economic data on the service and manufacturing sectors due to be released Monday. Additionally, speeches from Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee, and Minneapolis Fed President Neel Kashkari will be closely monitored for clues regarding the central bank’s next moves.
In summary, the stock market is buoyed by the Federal Reserve’s proactive stance on interest rates, marking a significant milestone for the Dow and other major indexes while setting the stage for further economic insights in the coming week.
Original Story https://www.cnbc.com/2024/09/22/stock-market-today-live-updates.html
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