As the top investment manager and financial market journalist, I bring you the latest updates on the S&P 500 closing higher, signaling substantial gains in the third quarter. The positive momentum is driven by the anticipation of further interest rate cuts from the Federal Reserve, as officials hint at more easing measures in the future.
By the end of trading on Monday, the S&P 500 index rose by 0.3%, the Dow Jones Industrial Average gained 17 points, or 0.04%, and the Nasdaq Composite index climbed by 0.4%. The S&P 500 has seen a 5% increase for the quarter, bouncing back from a sharp decline in global markets on Aug. 5 due to recession fears, which have since subsided with the release of positive economic data.
Federal Reserve Chairman Jerome Powell emphasized that the monetary policy is not predetermined, but further rate cuts are likely if the economy progresses as expected. Atlanta Fed President Raphael Bostic also expressed openness to supporting another 50 basis point rate cut if there are unexpected weaknesses in the labor market.
This week, investors will closely monitor labor market data, including jobless claims and private payrolls, ahead of the release of the October jobs report on Friday. Economists anticipate the addition of 144,000 jobs to the US economy.
On the corporate front, Stellantis faced a 12% decline in stock value after revising its annual forecasts and citing increased cash burn rates. Meanwhile, Nio Inc saw a 2% increase after announcing a significant investment in its Chinese EV business.
In the energy sector, oil prices edged higher due to escalating tensions in the Middle East, particularly with reports of Israel preparing for a limited ground invasion of Lebanon in its conflict with Hezbollah.
In summary, the financial markets are responding positively to the prospect of further interest rate cuts and improved economic data. Investors should stay informed about upcoming economic indicators and corporate developments to make informed decisions about their investments.
