Record-breaking week on Wall Street continues after interest rate cut and economic data analysis
The S&P 500 climbed to a new closing high on Monday, as traders aimed to build on the gains from the previous week, according to CNBC.
The Federal Reserve’s interest rate cut played a key role in the market’s momentum. The broad market index rose by 0.28 percent, closing at 5,718.57.
Meanwhile, the Dow Jones Industrial Average gained 61.29 points, or 0.15 percent, ending at 42,124.65, while the Nasdaq Composite increased by 0.14 percent to 17,974.27. All three indexes closed at record highs.
These gains followed a strong week on Wall Street, driven by the Federal Reserve’s decision to reduce interest rates by 50 basis points. This marked the first such cut in four years. Despite some initial market volatility following the announcement, stocks saw a rebound in the following days.
Friday saw the Dow reach a record level, closing above 42,000 for the first time. All major indexes gained more than 1 percent throughout the week, with the S&P 500 setting new records.
On Monday, investors also reviewed fresh economic data, including a 15-month low in PMI manufacturing activity for the US in August.
Traders remain focused on upcoming reports, such as Thursday’s weekly jobless claims data, which is expected to offer more insight into the state of the US economy and the labour market.
Karl Schamotta, chief market strategist at Corpay, commented on market assumptions, writing, “Investors have been working under the assumption that a softening in labour markets was driving Fed policy, and have placed a heavy emphasis on relatively-small changes in non-farm payrolls reports, but it is possible that this assumption is misplaced. And if it is, the volatility roadmap could be redrawn.”
