By Caroline Valetkevitch
The U.S. stock market surged to a new record high on Monday, bouncing back from a brief dip after Federal Reserve Chair Jerome Powell indicated that the central bank is not rushing to implement further interest rate cuts.
With the Dow also reaching an all-time high, investors are optimistic about the future. Powell mentioned the possibility of two more rate cuts this year, totaling 50 basis points, if the economy continues to perform as expected.
Despite the positive outlook, some experts believe there may be more surprises in store from the Fed. Jake Dollarhide, CEO of Longbow Asset Management, suggested that a "soft landing" scenario could be on the horizon.
Following Powell's speech, traders adjusted their expectations, with a slight decrease in the likelihood of a 50 basis point rate cut in November. The market reacted positively, with the S&P 500, Nasdaq, and Dow all posting gains for the quarter and the month.
For the average person, this means that the stock market is performing well, and there may be more opportunities for growth in the future. It's important to stay informed about the Fed's decisions and economic indicators to make informed decisions about investments and financial planning.
