New York, NY: US stocks closed out the month and the quarter on a high note, setting fresh records as investors responded positively to Federal Reserve Chair Jerome Powell’s commitment to supporting the economy. The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all saw gains, with the S&P 500 reaching a new record high. Powell’s assurance that the Fed will take necessary actions to maintain economic stability without rushing future rate cuts contributed to the market’s optimism.
Throughout September, Wall Street indexes defied their usual patterns, ending the month with gains instead of losses. The S&P 500 reported its best year-to-date performance since 1997 by the end of September, while also enjoying its strongest quarter since 2021. The Dow led the major indexes in gains over the past three months, climbing 8.2%, followed by the S&P with a 5.4% increase, and the Nasdaq with nearly 3% growth.
Investor confidence received a boost from the Federal Reserve’s significant interest rate cut and signs of resilience in the US economy. These factors, coupled with Powell’s remarks on the Fed’s commitment to economic stability, led to three consecutive weeks of stock market gains. While profit-taking and portfolio rebalancing were evident on the final trading day of the month and quarter, the overall sentiment remained positive.
Looking ahead, investors are eagerly awaiting the release of the September jobs report on Friday, which will provide insight into the health of the labor market and serve as a crucial test for the recent market rally. Powell’s statements on the Fed’s cautious approach to future rate decisions have tempered expectations of another large rate cut, signaling a more measured strategy moving forward.
In other market news, Chevron’s stock saw a boost after the US Federal Trade Commission approved the company’s acquisition of Hess Corp, with certain restrictions in place. Meanwhile, Stellantis’ stock tumbled after the automaker lowered its 2024 profit forecast, reflecting challenges in the global industry landscape.
Overall, the stock market closed September and the quarter on a positive note, setting the stage for potential continued growth in the coming months. With key economic data releases and ongoing developments in the global market landscape, investors remain cautiously optimistic about the future trajectory of US stocks.