Traders on the floor of the New York Stock Exchange on September 9, 2024.
Spencer Platt | Getty Images News | Getty Images
The moves come after a week of gains on Wall Street, centered around the Federal Reserve’s decision to cut interest rates by 50 basis points, its first cut in four years. Despite some volatility after the initial announcement, stocks rebounded in the days that followed.
THE Dow ended Friday at a record high, which was notably above 42,000. All three major indexes added more than 1% for the week, during which S&P 500 also reached new records.
“I view this week’s rate cut as a signal that the Fed is prepared to act quickly if it needs an insurance policy against excessive weakening in the labor market,” Ronald Temple, Lazard’s chief market strategist, said in a note published Friday.
“The reality is that neither 25 nor 50 bps of rate cuts will materially change the economic trajectory in the near term,” he said. “But the signal is nonetheless important and markets responded the next day, pushing the S&P 500 index to a new all-time high.”
Investors will be watching Monday for economic data on the services and manufacturing sectors. They will also be watching speeches by Atlanta Fed President Raphael Bostic, Chicago Fed President Austan Goolsbee and Minneapolis Fed President Neel Kashkari for insights into the central bank’s next steps.
