Breaking News: S&P 500 Wraps Up Third Quarter with Significant Gains Amidst Expectations of Further Interest Rate Cuts - Analysis
As the third quarter comes to a close, the S&P 500 has closed higher, driven by the anticipation of additional interest rate cuts by the Federal Reserve. By 4:00 p.m. ET, the index was up 0.3%, with the Dow Jones up 17 points, and the Nasdaq up 0.4%. The S&P 500 has seen a 5% increase for the quarter, rebounding from a global markets selloff triggered by recession concerns on August 5th.
Federal Reserve chairman Jerome Powell emphasized that monetary policy is not on a preset course, indicating that further rate cuts are likely if the economy progresses as expected. This sentiment was echoed by Atlanta Fed President Raphael Bostic, who expressed openness to supporting another 50 basis point rate cut in the event of unexpected weakness in the labor market.
Moving forward, labor market data, including jobless claims and private payrolls, will be closely monitored by investors. The release of the October jobs report on Friday is highly anticipated, with economists predicting the addition of 144,000 jobs to the US economy.
On the corporate front, Stellantis stock saw a 12% decline after revising its annual forecasts, while Nio Inc. experienced a surge following a significant cash injection. Additionally, AT&T announced plans to sell its ownership in DirecTV, CVS Health stock rose after proposed fixes by major shareholder Glenview Capital, and Marsh & McLennan agreed to acquire McGriff Insurance Services for $7.75 billion.
In the oil market, prices edged higher due to escalating tensions in the Middle East as Israel reportedly prepared for a limited ground invasion of Lebanon. This comes after demand concerns arose when China's fiscal stimulus failed to reassure market confidence.
Overall, these developments in the financial markets highlight the importance of staying informed and agile in response to changing economic conditions. Investors should remain vigilant and seek expert advice to navigate the evolving landscape of global finance.