With a new record, the S&P 500 said goodbye to September and the third quarter, amid a positive climate.
The index rose 0.42% and closed at 5,762.48 points. Thus, the Dow Jones Index strengthened 17.15 points or 0.04% to 42,330.15 points, also at record levels, although during the session it fell by around 400 basis points. THE Nasdaq closed at 18,189.17 points with gains of 0.38%.
Shares rose at closing Wall Streetcutting losses following comments from Fed Chairman Jerome Powell. He indicated that further reductions will follow, without however implying that there will be another reduction of 50 basis points. If the economy continues as it is, we should expect, he said, two cuts of 25 basis points each by the end of the year.
The beginning of September was difficult, but stocks eventually recovered after the Federal Reserve cut interest rates by 50 basis points. The Dow Jones gained 1.9%, while the S&P 500 rose 2%, in its first positive September since 2019. The Nasdaq recorded a 2.7% gain in September.
In the third quarter, despite the sharp sell-off in early August, the Dow Jones closed with gains of more than 8%. The S&P 500 gained 5.5% and the Nasdaq gained 2.6%.
“The bull market managed to survive the third quarter of this year, which is traditionally the weakest of the year. It looks set to remain intact until at least the end of the year as corporate profits remain strong, interest rates are on a downward trajectory and consumers continue to spend,” said Emily Bowersock Hill, managing director at Bowersock Capital Partners.
Although investors appear optimistic as they approach the final quarter of the year, October is seen as a difficult month for markets. It is known for high volatility, with some of Wall Street’s biggest crashes occurring this month.
