The S&P 500 rose to a record close on Monday, concluding a winning month and quarter.
The Dow Jones Industrial Average gained 17.15 points, or 0.04%, to 42,330.15. The S&P 500 added 0.42% and closed at 5,762.48. Both indexes closed at records. The Nasdaq Composite advanced 0.38%, ending at 18,189.17.
Stocks rallied into the close, erasing losses seen after commentary from Federal Reserve Chair Jerome Powell. He said Monday that more interest rate decreases could be forthcoming, but cautioned that the central bank did not have a preset path. If the economy moves as expected, he said to expect two rate cuts of a quarter percentage point each this year.
“This is not a committee that feels like it’s in a hurry to cut rates quickly,” Powell said.
Monday’s action marked the end of a strong but choppy month and quarter for the three major averages.
Markets had a rough start to what is historically the weakest month for the stock market, but rebounded as the Federal Reserve cut interest rates by a supersized half point.
In the month, the Dow advanced 1.9%, and the tech-heavy Nasdaq gained 2.7%. The S&P 500 added 2%, notching its first positive September since 2019.
Stocks struggled at multiple points in the third quarter, leading investors to question whether 2024′s big gains had staying power. Notably, the three-month period contained the Aug. 5 global market rout, during which the Dow plummeted more than 1,000 points.
But investors were ultimately able to climb those walls of worry, with the Dow finishing the quarter more than 8% higher. The S&P 500 and Nasdaq added about 5.5% and 2.6%, respectively, since July began.
“The bull market has survived the year’s historically weakest quarter,” said Emily Bowersock Hill, CEO of Bowersock Capital Partners. “It is likely to remain intact through at least the end of the year, as earnings remain strong, interest rates are moving lower and consumers are still spending.”
Though investors are broadly optimistic heading into the final stretch of the year, October has a troubling history for markets. It is known as a time of extreme volatility, with some of the more notable Wall Street drawdowns occurring over the month.
Later this week, market participants will monitor closely watched labor data for insights into the health of the economy.
