Stocks rose Monday as market participants continued to have positive outlooks following the Federal Reserve's large interest rate cut last week. The Dow Jones Industrial Average climbed over 60 points -- to close at another record high -- while the S&P 500 Index and Nasdaq Composite advanced about 0.3% and 0.1%, respectively.
Here's how the market settled on Monday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
FedWatch:
Atlanta Federal Reserve President Raphael Bostic said Monday he supported the central bank's 50 basis point interest rate cut and foresees more dovish policy decisions ahead.
"Progress on inflation and the cooling of the labor market have emerged much more quickly than I imagined at the beginning of the summer," Bostic said in remarks before the European Economics and Financial Centre. "In this moment, I envision normalizing monetary policy sooner than I thought would be appropriate even a few months ago."
"If the pandemic-era economy has taught us anything, it is to expect to be surprised," he added.
Chicago Fed President Austan Goolsbee said Monday that policymakers are now in a position to lower interest rates as inflationary pressures continue to ease.
"As we've gained confidence that we are on the path back to 2%, it's appropriate to increase our focus on the other side of the Fed's mandate -- to think about risks to employment, too, not just inflation," Goolsbee said in remarks before the National Association of State Treasurers. "And given the through line on economic conditions, that likely means many more rate cuts over the next year."
On the Economic Front:
U.S. Manufacturing Activity reached its lowest level in 15 months in September, while U.S. Services Activity continued to grow, the S&P Global's Purchasing Managers' Index (PMI) survey showed Monday.
Manufacturing PMI came in at 47.0 for the month, representing the percentage of managers inficating expansion, declining from August's print of 47.9 for the lowest reading since June 2023. For services, the index rose 0.2 points from August in September, matching expectations.
In the News:
Intel
Zoom Out:
UBS Global Wealth Management Chief Investment Officer Mark Haefele wrote in a Monday note that the final quarter of 2024 could be choppy despite widespread optimism following the Fed's rate cut. Haefele argues that market sentiment is "fragile," and advises investors to manage their U.S. election risk and exposure, alongside other potential headwinds stemming from geopolitical conflicts.
"Investors lacking adequate exposure to AI can consider using bouts of market angst to seize the longer-term opportunity presented by this theme, which we expect to be a driver of markets in coming years. Those with high exposure can consider capital preservation strategies," Haefele said.
For Tuesday:
Market participants will turn their attention towards fresh housing and consumer confidence data on Tuesday, as well as remarks from Fed Governor Michelle Bowman -- the only policymaker that voted no for the central bank's recent policy decision.