US stocks bid farewell to the month and the quarter with fresh records as investors reacted to Federal Reserve Chair Jerome Powell vowing to do what it takes to keep the economy humming, while signaling he won't rush future rate cuts.
The S&P 500 (^GSPC) rose 0.4% to close at a new record, while the Nasdaq Composite (^IXIC) gained close to 0.4%. Meanwhile, the Dow Jones Industrial Average (^DJI) finished just above the flatline, securing its latest all-time-high.
Typically the cruelest month for stocks, Wall Street indexes recorded monthly wins to close out the last trading day of September. Notably, the S&P 500 notched its best year-to-date performance at September's end since 1997. The S&P also enjoyed its best quarter since the fourth quarter of 2021.
Over the last three months, the Dow led the major indexes' gains, up 8.2%. The S&P gained 5.4%, and the Nasdaq added nearly 3%.
The Federal Reserve's jumbo interest rate cut and signs of resilience in the US economy have lifted confidence, helping stocks post three weekly wins in a row. The final trading day of the month and the quarter also came with profit taking and rebalancing.
Investors are now bracing for the September jobs report, due out on Friday, which is seen as posing an important test for the recent rally. The pressing question is just how quickly the labor market is slowing as the market weighs whether the Fed has acted aggressively to protect a healthy economy or to help a flailing one.
"Overall, the economy is in solid shape; we intend to use our tools to keep it there," Powell said in a speech before the National Association for Business Economics in Nashville, Tenn. His remarks come days ahead of the the crucial monthly jobs report.
Powell's comments on not rushing the next round of rate decisions also lowered expectations of another jumbo cut.
Stocks finish with fresh records to close September and the quarter
Wall Street said goodbye to the month of September and to the third quarter as the major gauges recorded fresh highs.
The S&P 500 (^GSPC) rose 0.4% to close at a new record, while the Nasdaq Composite (^IXIC) gained close to 0.4%. Meanwhile, the Dow Jones Industrial Average (^DJI) finished just above the flatline, securing its latest all-time-high.
Over the last three months the Dow finished up 8.2%, leading the pack. The S&P gained 5.4% and the Nasdaq added nearly 3%.
Looking ahead to the rest of the week, investors are bracing for the September jobs report, due out on Friday, which is seen as posing an important test for the recent rally. The pressing question is just how quickly the labor market is slowing as the market weighs the Federal Reserve's next step after cutting rates by 50 basis points.
During a speech on Monday Fed Chair Jerome Powell signaled that the Fed isn't in a rush to cut rates, but that officials will do what it takes to keep the economy on solid ground.
Hamza Shaban
A historically tough month set to ends with gains
Typically a challenging month for stocks, September has turned out to be a positive one for the major gauges, rounding out a solid quarter and setting the stage for the Federal Reserve's easing cycle.
The Dow Jones Industrial Average (^DJI) was on track to increase 1.4% for the month and ended the quarter up 7.8%, leading the pack. The S&P 500 (^GSPC) was set to gain about 1.5% for September and just under 5% for the quarter. Meanwhile, the Nasdaq Composite (^IXIC) was poised to add 2% for the month and close to 2% for the quarter.
The start of October could further boost the bullish mood if the next batch of economic data shows more favorable signs.
Any evidence that the Federal Reserve is cutting interest rates amid an ideal backdrop of continuous economic growth, a solid labor market, and easing inflation would be a "hugely bullish" outcome for equities, Citihead of US equity trading strategy Stuart Kaiser said.
Hamza Shaban
Powell speech lowers expectations for another jumbo rate cut
On Monday afternoon Fed Chair Jerome Powell vowed to do what it takes to keep the economy humming. But his remarks clarifying that the central bank is not on a predetermined path, and isn't in a rush to quickly cut rates also appeared to lower expectations for another 50 basis point cut.
Market bets for another half-percent cut dropped to 35% Monday afternoon, compared to 53% a day ago, according to the CME FedWatch tool.
"Overall, the economy is in solid shape; we intend to use our tools to keep it there," Powell said in a speech before the National Association for Business Economics in Nashville, Tenn. His remarks come days ahead of the the crucial monthly jobs report.
Powell said if the economy unfolds as expected, the Fed will cut interest rates "over time toward a more neutral stance."
But it is in no rush, he made clear during a question-and-answer session following his speech.
“This is not a committee that wants to cut rates quickly,” added Powell, referring to the Fed body that decides on the direction of rates.
Hamza Shaban
Chevron stock rises as FTC allows Hess deal
Shares of Chevron rose close to 0.6% Monday afternoon following news that the US Federal Trade Commission cleared the company's $53 billion purchase of Hess Corp but barred CEO John Hess from serving on Chevron's board.
Even after the FTC's order, a final obstacle to the deal is still present in Exxon Mobile's challenge to the deal, Reuters reported.
The FTC alleged that Hess had openly communicated with members of the Organization of the Petroleum Exporting Countries (OPEC) to stabilize global oil markets. The FTC also said that allowing him to serve on Chevron's board "would amplify Mr. Hess's supportive messaging to OPEC and others, thereby meaningfully increasing the likelihood that Chevron would align its production with OPEC's output decisions to maintain higher prices."
The deal by the No. 2 US oil company will give Chevron access to the oil-rich offshore fields of Guyana.
Hamza Shaban
Stocks trending in afternoon trading
Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Monday:
Carnival (CCL): The cruise line fell 3% Monday after the company beat analyst expectations for the third quarter and raised its full-year guidance. But the results were still not enough to please investors looking for even stronger results.
Meta (META): The social media company is still riding the optimism sparked by its developer conference last week, where it featured AI and mixed reality updates. Shares rose nearly 1% Monday following an analyst upgrade as Monness, Crespi, Hardt, & Co. upped its price target from $570 to $620 on the strength of Meta's showcase and future services.
Boeing (BA): The airplane manufacturer sank deeper into its slump as the factory worker strike heads into its third week without a solution in sight and as talks with the company have broken off. Wall Street analysts have lowered their targets for Boeing stocks, citing costs associated with the strike. Shares fell more than 2% Monday.
Josh Schafer
Real estate leads S&P 500 higher
The Real Estate (XLRE) sector rose more than 0.5% to lead the S&P 500 on Monday in a day with relatively subdued market action. The benchmark index itself was up just 0.06% around 12:30 p.m. ET.
Meanwhile, the Materials (XLB) sector was the biggest laggard falling 0.8%.
Laura Bratton
Nvidia stock slips on China sales fears
Nvidia (NVDA) stock slipped around 1% in early trading after falling as much as 2.8% before the market open. The drop follows a report from Bloomberg Friday that Beijing is urging Chinese companies to buy from chipmakers within its own borders — rather than Nvidia’s popular GPUs.
Nvidia has designed special chips for China since the US ramped up export controls on semiconductors to the country beginning in late 2022. Nvidia currently exports a version of its Hopper chip called H20, which complies with tougher trade rules, to China. Nvidia is reportedly working to bring online a version of its latest Blackwell chips for China as well.
Analysts remain bullish on Nvidia despite trade tensions and historic volatility in the semiconductor sector. About 90% of Wall Street analysts recommend buying the stock and see shares rising to $147.61 over the next year, according to Bloomberg consensus estimates.
Josh Schafer
Investors look for signs of growth in key economic data week
A slew of labor market data headlined by the September jobs report will be in focus for investors this week. Updates on activity in the services and manufacturing sectors will also catch attention as market participants attempt to discern how quickly the US economy is slowing.
Wall Street strategists argue there’s a clear read through on what type of data would be supportive of a further rally in stocks.
Citihead of US equity trading strategy Stuart Kaiser told Yahoo Finance a scenario where the Fed isn't cutting because the economy needs it is "hugely bullish" for equities. Therefore a stronger than expected jobs report would likely be seen as a positive for stocks.
The September jobs report is expected to show 130,000 nonfarm payroll jobs were added to the US economy, with unemployment holding steady at 4.2%, according to data from Bloomberg. In August, the US economy added 142,000 jobs while the unemployment rate fell to 4.2%.
"Everything is about the growth side of the economy and everything is about the consumer," Kaiser said. "Any data that suggests consumer spending is holding in and you're not seeing the weakness that people are worried about and that the Fed is worried about, I think that's all going to be positive for equity markets."
Subsequently, a bad jobs report on Friday could have the opposite impact on stocks.
"If it turns out that they started cutting because they're legitimately concerned about weakness in the labor market, rate cuts aren't going to be enough to help equities in that case and you're going to trade lower," Kaiser said. "So the why [the Fed is cutting] matters here. And payrolls is going to help answer that."
Josh Schafer
Automakers slide as Stellantis cuts 2024 profit outlook
Instead of positive cash flow for the year, Stellantis now expects negative cash flow in a range of $5.58 billion to $11.17 billion. The automaker said it also expects its adjusted operating profit margin to come in between 5.5% and 7% this year, lower than the double-digit margins Stellantis initially forecast.
“Deterioration in the global industry backdrop reflects a lower 2024 market forecast than at the beginning of the period, while competitive dynamics have intensified due to both rising industry supply, as well as increased Chinese competition,” Stellantis said in a release.
Ford (F) and GM (GM) also traded lower after the news.
Josh Schafer
Stocks slide at the open, all eyes on Powell
US stocks moved lower on Monday but were still set for strong monthly and quarterly gains as investors waited to hear Federal Reserve Chair Jerome Powell speak in the run-up to the crucial monthly jobs report.
The S&P 500 (^GSPC), the Nasdaq Composite (^IXIC), and the Dow Jones Industrial Average (^DJI) all fell about 0.2%.
With few catalysts to kick off the week, Powell’s speech on Monday afternoon is expected to be key.
Satellite TV provider DirecTV (T, TPG) said Monday it will buy rival Dish Network (SATS), including Dish's streaming brand Sling TV, through a debt exchange transaction. Financial terms were not disclosed.
The deal, which is still subject to regulatory approval, is set to create one of the US's largest pay-TV providers.
"The combination of DirecTV and Dish will benefit US video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers," the companies said in a joint statement.
Shares in EchoStar (SATS), which owns Dish Network, moved about 1% higher in premarket trading following the news. The stock had surged nearly 10% on Friday after the acquisition rumors intensified.
Elon Musk's X has updated its terms of service to steer any disputes by users of the social media platform formerly known as Twitter to a federal court in Texas whose judges frequently deliver victories to conservative litigants in political cases. New terms of service that will take effect on Nov. 15 specify that any lawsuits against X by users must be exclusively filed in the U.S. District Court for the Northern District of Texas or state courts in Tarrant County, Texas. Following a move from San Francisco, X is today headquartered in Bastrop, Texas, near Austin, whose federal court is in Texas' Western District.
Argentine fans of former One Direction singer Liam Payne, who died in a dramatic fall from his hotel balcony in Buenos Aires, gathered on Thursday afternoon around the city's central obelisk monument to remember the troubled boy band icon. Payne, 31, who shot to global fame with the X Factor boy band, was found dead after he fell from a third-floor hotel room balcony on Wednesday, triggering an outpouring of fan tributes around the world from Britain to Buenos Aires. Outside the hotel where he was staying many fans gathered to hold a vigil overnight and on Thursday morning, leaving flowers and notes, and lighting candles that dripped wax that ran down the pavement as other fans stood close by in tears.
Anyone hoping for a quiet end to the trading week in Asia will be disappointed, as investors brace for a batch of top-tier economic data on Friday that includes Japanese inflation, Malaysian GDP, and the main event - Chinese GDP. The wave of fiscal stimulus measures announced recently has come too late to boost growth this year but has prompted some economists to raise their 2025 forecasts. Investors are realizing that Beijing's fiscal, monetary and liquidity support, however successful they prove to be, will take time to bear fruit.
HOUSTON, October 17, 2024--Global energy technology company SLB (NYSE: SLB) today announced that it has entered into a definitive agreement to sell its interests in the Palliser Block located in Alberta, Canada.
Rick and Morty, which already had three seasons still to air, now has been renewed for another two. Meaning, the animated series will have a dozen seasons under its belt come 2029. Adult Swim announced the two-season renewal on Thursday afternoon at New York Comic Con, while also sharing a “sneak animatic” from one of …
CHICAGO (AP) — Lukas Reichel is poised to make his season debut for the Chicago Blackhawks after he was a healthy scratch for the team's opening four-game trip.
Holdings of U.S. Treasuries by foreigners rose to $8.503 trillion in August, up from $8.338 trillion in the previous month. The benchmark 10-year Treasury yield started August at 3.978% and ended the month at 3.844%, falling 13.4 basis points. U.S. Treasury yields had been declining in August as Federal Reserve officials flagged the onset of the easing cycle with inflation on its way to its 2% target.
A grand jury indicted a 14-year-old alleged shooter and his father who bought him the gun on Thursday in the September slaying of two students and two teachers at a Georgia high school, affirming initial charges brought by prosecutors and adding numerous other criminal counts. The Barrow County grand jury indicted Colt Gray on a total of 55 counts, including four counts of malice murder, four counts of felony murder, plus aggravated assault and cruelty to children. Grand jurors indicted his father, Colin Gray, 54, with 29 criminal counts, including second-degree murder, involuntary manslaughter and adding reckless conduct to prosecutors' initial charges.
WASHINGTON, October 17, 2024--FCC Chairwoman Jessica Rosenworcel blocked funding for Starlink to deploy satellite internet service in hard-to-reach areas of the country.
With three weeks left in the presidential campaign, Democrat Kamala Harris is spending most of her days trying to shore up support in the “blue wall” states of Pennsylvania, Michigan and Wisconsin as she tries to avoid a repeat of Hillary Clinton’s collapse there eight years ago.