Tuesday, April 23, 2024
HomeBusiness and EconomyNasdaq and S&P 500 Surge in Anticipation of Federal Reserve Chair Powell's...

Nasdaq and S&P 500 Surge in Anticipation of Federal Reserve Chair Powell’s Remarks

Coinbase gains Singapore license, Viatris divests businesses, market sees more declines than advances.

- Advertisement -

Oct 2 (The Street Press) – On Monday, the Nasdaq, which focuses on tech companies, and the S&P 500, a broader stock market indicator, went up. This happened because many companies that are expected to grow did well. People who invest in stocks were also waiting to hear what Jerome Powell, the head of the Federal Reserve, had to say. They were also interested in seeing more information that will come out later this week, which will help them figure out what the central bank might do with interest rates.

Big-name stocks like Apple, Meta Platforms, Amazon.com, Alphabet, and Microsoft went up by varying amounts, between 0.9% and 2.0%.

Nvidia had a particularly good day, with a 3.1% increase. This happened because Goldman Sachs, a well-known financial company, showed a lot of confidence in Nvidia’s stock by adding it to their “conviction list.”

- Advertisement -

The S&P 500 had its gains held back a bit as Tesla saw a 0.7% drop. This decline happened because the electric vehicle maker didn’t meet the expectations of the market for third-quarter deliveries.

On the other hand, stocks related to information technology went up by 1.2%, while utilities, which are often seen as similar to bonds, were the top losers among the major sectors in the S&P 500, with a decline of 2.6%.

Investors were eagerly waiting for comments from Federal Reserve Chair Jerome Powell and Philadelphia Fed President Patrick Harker during a roundtable discussion scheduled for 11 a.m. ET. Later in the day, Cleveland Fed President Loretta Mester would also be speaking.

- Advertisement -

The final estimate for S&P Global’s September Manufacturing Purchasing Managers’ Index (PMI) turned out to be 49.8, which is slightly better than the preliminary estimate of 48.9 that was released in September.

Additionally, the Institute for Supply Management (ISM) reported that its manufacturing PMI for last month increased to 49.0, marking the highest reading since November 2022, up from 47.6 in August.

In terms of market expectations, traders are keeping their bets on the benchmark interest rate steady for November and December, with around 69% and 55% probability, respectively, according to CME’s FedWatch tool. However, they have also factored in a 25-basis-point rate cut as early as March.

“The Fed has said that their target is still 2% and they are still long ways away from getting inflation really going in the direction that they want”, Russell Hackmann, President of Hackmann Wealth Partners, told Reuters.

On Monday, the yield on the 10-year Treasury note inched up, reaching levels not seen in 16 years. Meanwhile, the yield on the 2-year note, which is a key indicator of interest rate expectations, stayed above 5%.

Investors are eagerly awaiting job openings data on Tuesday, which will provide additional insights into the Federal Reserve’s potential interest rate decisions. This data comes ahead of the crucial monthly jobs report scheduled for the end of the week, which will offer further clues about the Fed’s interest-rate strategy.

In the third quarter of 2023, U.S. stocks concluded on a lower note, marking their first quarterly decline for the year. This decline was driven by the uncertainty surrounding the possibility of interest rates remaining elevated for an extended period, especially due to rising crude oil prices that have fueled concerns about inflation.

Addressing some concerns, Congress passed a temporary funding bill on Saturday with strong support from Democrats. This decision followed Republican House Speaker Kevin McCarthy’s shift from his party’s earlier demand for a partisan bill, which had been a source of tension.

As of 10:04 a.m. ET, here are the market updates:-

  • The Dow Jones Industrial Average was down by 55.31 points, representing a 0.17% decrease, and stood at 33,452.19.
  • The S&P 500 had gained 7.16 points, or 0.17%, reaching 4,295.21.
  • The Nasdaq Composite showed notable strength with an increase of 100.19 points, equivalent to a 0.76% rise, bringing it to 13,319.51.

Coinbase experienced a 4.1% increase in its stock price following the news that the cryptocurrency exchange had been granted a payments license by the central bank of Singapore.

Viatris saw its stock rise by 4.0% after announcing on Sunday that it had reached agreements to divest certain parts of its business for up to $3.6 billion.

On the market, there were more declining stocks than advancing ones, with a ratio of 2.52-to-1 on the NYSE and 1.67-to-1 on the Nasdaq.

In terms of new milestones, the S&P index reached one new 52-week high and 33 new lows, while the Nasdaq recorded 16 new highs and 109 new lows.

- Advertisement -
SourceReuters
Sk Sahiluddin
Sk Sahiluddinhttps://www.thestreetpress.com
Sk Sahiluddin is a seasoned journalist and media professional with a passion for delivering accurate and impactful news coverage to a global audience. As the Editor of The Street Press, he plays a pivotal role in shaping the editorial direction and ensuring the highest journalistic standards are upheld.
RELATED ARTICLES
- Advertisment -

Most Popular