Interest Rate Optimism Contributes To Strength On Wall Street
14 Outubro 2024 - 5:33PM
IH Market News
Following the strong upward move seen during last Friday’s
session, stocks saw further upside during trading on Monday. The
major averages all moved higher on the day, with the Dow and the
S&P 500 reaching new record closing highs.
The major averages reached new highs for the session late in the
day before giving back some ground going into the close. The Dow
(DOWI:DJI) rose 201.36 points or 0.5 percent to 43,065.22, the
Nasdaq jumped 159.75 points or 0.9 percent to 18,502.69 and the
S&P 500 climbed 44.82 points or 0.8 percent to 5,859.85.
The continued strength on Wall Street came amid optimism about
the outlook for interest rates following last Friday’s report on
producer price inflation.
The Labor Department report showed producer prices were
unexpectedly unchanged in September, while the annual rate price
growth slowed modestly.
While hopes the Federal Reserve will lower rates by another 50
basis points next month have largely evaporated, the data
reinforced optimism the central bank will cut rates by 25 basis
points.
CME Group’s FedWatch Tool is currently indicating an 86.1
percent chance the Fed will cut rates by a quarter point at its
November meeting.
Overall trading activity was somewhat subdued, however, with
some traders likely away from their desks due to the Columbus Day
holiday.
A lack of major U.S. economic data may also have kept some
traders on the sidelines ahead of the release of key reports on
retail sales and industrial production later in the week.
Sector News
Semiconductor stocks turned in some of the market’s best
performances on the day, with the Philadelphia Semiconductor Index
jumping by 1.8 percent.
Considerable strength was also visible among housing stocks, as
reflected by the 1.6 percent gain posted by the Philadelphia
Housing Sector Index.
Airline, utilities and banking stocks also saw significant
strength, while networking stocks showed a notable move to the
downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance on Monday, with Japanese
markets closed for a holiday. China’s Shanghai Composite Index
surged by 2.1 percent, while Hong Kong’s Hang Seng Index slid by
0.8 percent.
Meanwhile, the major European markets all moved to the upside on
the day. While the German DAX Index advanced by 0.7 percent, the
U.K.’s FTSE 100 Index climbed by 0.5 percent and the French CAC 40
Index rose by 0.3 percent.
The bond markets were closed in observance of Columbus Day.
Looking Ahead
Trading on Tuesday may be impacted by reaction to earnings news
from Bank of America (NYSE:BAC), Citigroup (NYSE:C) Goldman Sachs
(GS), Johnson & Johnson (JNJ), UnitedHealth (UNH) and Walgreens
(WBA).
SOURCE: RTTNEWS
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