Summary: September 16, 2024 – Major Market Movements
On Thursday, U.S. stocks surged to new record highs. The S&P 500 climbed 1.7% to close at 5,713.64, breaking the 5,700 ceiling for the first time. The Dow Jones Industrial Average also saw a significant gain, closing at 42,025.19, its first finish above the 42,000 mark while the tech-heavy Nasdaq Composite experienced its fourth-best day of 2024, surging 2.5% on strong performances from Tesla (7.4%), Nvidia (4%), and Apple (3.7%).
Asian markets echoed this upward trend on Friday, with Japan’s Nikkei 225 adding around 1.7%, buoyed by a 2.8% year-on-year increase in the country’s core consumer price index. Meanwhile, both the People’s Bank of China and the Bank of Japan maintained their respective interest rates, against some economists’ expectations.
The U.S. Federal Reserve’s recent 50 basis point rate cut contributed to the market euphoria, alleviating investor fears that the central bank was reacting to a slowing economy. Fed Chair Jerome Powell’s term "recalibration" reassured investors that the Fed aims to protect employment levels.
In response to these developments, Oppenheimer’s analysis suggests the market is positioned for a strong fourth quarter if this pattern holds, as history has shown positive fourth-quarter performance when the S&P 500 achieves record highs in September. Reflecting this optimism, BMO has raised its year-end target for the S&P to 6,100, signifying an 8.6% increase from Wednesday’s close, the most bullish projection on Wall Street.
As Dinah Washington crooned in her classic song, “What a difference a day makes.” Indeed, just a day after the Fed’s announcement, markets rebounded sharply, demonstrating renewed investor confidence in the strength of the economy.
Contributors: CNBC’s Alex Harring, Fred Imbert, Hakyung Kim, and Lisa Kailai Han.
Original Story https://www.cnbc.com/2024/09/20/cnbc-daily-open-markets-have-finally-processed-the-good-news-.html
Category :
Tags:
