S&P 500 Hits Record High Amid Fed's Steady Interest Rate Stance
The S&P 500 soared to a record high, buoyed by Federal Reserve Chair Jerome Powell's stance on steady interest rates. Powell predicts two more cuts if the economy evolves as expected, impacting the stock market which showed quarterly gains. The Dow and Nasdaq also posted significant highs.
The S&P 500 achieved a record high close on Monday, rebounding from a brief dip following remarks by Federal Reserve Chair Jerome Powell. Powell indicated the U.S. central bank is not in a rush to implement further interest rate cuts.
The Dow also posted an all-time high while all three major U.S. stock indexes registered gains both for the month and the quarter. Powell, addressing the National Association for Business Economics in Nashville, predicted two more rate cuts, totaling 50 basis points this year if the economy meets expectations. Jake Dollarhide, CEO of Longbow Asset Management, remarked, 'The soft landing could actually happen.'
The FedWatch Tool indicated traders now see a 35% chance of a 50 basis point reduction in November. Following Powell's comments, the S&P 500 initially fell but rallied by close, while the Dow rose 17.15 points, or 0.04%, to 42,330.15. The Nasdaq Composite also gained 69.58 points, or 0.38%, to close at 18,189.17.
CVS Health rose 2.4% amid reports that Glenview Capital Management plans to meet with top executives to improve operations. Trading volumes on U.S. exchanges reached 12.64 billion shares, surpassing the recent 20-day average. Notable economic data, such as jobless claims and monthly payrolls, is due this week, adding to market speculation.
(With inputs from agencies.)
ALSO READ
Dollar's Dynamic Dance Amid Economic Data and Political Speculation
Market Turmoil Amid U.S. Elections and Economic Data Uncertainty
Currency Winds Shift: Markets React to Global Economic Data
Dollar Dips Amid Booming U.S. Economic Data and UK Budget Surprises
Euro Zone Bond Markets Whirl: Economic Data Fuels Yield Surge