The stock market closed on a positive note on Monday, marking the end of a winning month and quarter for the three major indexes. The Dow Jones Industrial Average gained 17.15 points, or 0.04%, to a record 42,330.15. The S&P 500 added 0.42% to close at 5,762.48, and the Nasdaq Composite advanced 0.38% to end at 18,189.17.
All three indexes closed at record highs. Stocks rallied into the close, reversing earlier losses after Federal Reserve Chair Jerome Powell indicated potential interest rate cuts. Powell mentioned that while the central bank might lower rates, it doesn’t have a preset path.
If the economy progresses as expected, two quarter-point rate cuts could occur this year. This is not a committee that feels like it’s in a hurry to cut rates quickly,” Powell said. Monday’s action marked the conclusion of a strong but volatile month and quarter for the markets.
S&P 500 reaches record high
Despite a rough start, the major indexes recovered as the Federal Reserve reduced the interest rate by a significant half point. In September, the Dow rose by 1.9%, the Nasdaq gained 2.7%, and the S&P 500 added 2%, recording its first positive September since 2019.
Throughout the third quarter, stocks faced several challenges, raising concerns about the sustainability of 2024’s gains. One notable event was a significant drop of over 1,000 points in the Dow. Nevertheless, investors overcame these worries, with the Dow finishing the quarter more than 8% higher.
The S&P 500 and Nasdaq also showed gains of about 5.5% and 2.6%, respectively, since July. “The bull market has survived the year’s historically weakest quarter,” said Emily Bowersock Hill, CEO of Bowersock Capital Partners. It is likely to remain intact through at least the end of the year, as earnings remain strong, interest rates are moving lower, and consumers are still spending.
Despite the optimism, October has historically been a volatile month for the markets, with some of the most significant Wall Street downturns occurring during this time.
Later this week, investors will closely watch labor data for insights into the economy’s health.
