Investors will be looking at fresh economic data on Tuesday, with the Conference Board’s September consumer confidence reading due later this session.
In Wall Street, the Dow Jones rises to a new record as the market consolidates September gains. Stocks extend rally on Tuesday, boosting the Industrial Average.
The Dow rose to 110.34 points, reaching an all-time high. The Dow rose 52 points, or 0.3%. The S&P 500 climbed 0.6% and the Nasdaq Composite advanced 0.3%.
Tuesday’s gains pushed the Dow up 1.5% so far this month. The S&P 500 and Nasdaq are up 1.4% and 1.7%, respectively. Part of the gains are due to investor optimism that the Federal Reserve’s low rates will boost economic growth and boost profits.
Wall Street: What’s happening in the market
Interest-rate-sensitive sectors such as utilities and financials have rallied in recent weeks in anticipation of Fed cuts. There are now four S&P 500 sectors that are outperforming the market in 2024, up from just two sectors in July, according to Paul Hickey, co-founder of Bespoke Investment Group.
“There’s been a lot of movement under the surface… We’ve seen the spotlight shift from these mega-cap stocks to the broader market,” Hickey said on CNBC’s “Closing Bell: Overtime” on Monday.
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While traders have welcomed the significant rate cut, the market is likely to see further volatility in the coming weeks, according to Quincy Krosby, chief global strategist at LPL Financial.
“As valuations have risen on the back of market momentum following the Fed’s decisions, the market will be highly sensitive to any indication that the economy is weakening at a faster pace,” he said.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
