A screen displays the Dow Jones Industrial Average after the closing bell on the floor at the New York Stock Exchange on Sept. 19, 2024.
Brendan McDermid | Reuters
The S&P 500 rose to a record close on Monday as the market posted a winning month and quarter.
The Dow Jones Industrial Average gained 17.15 points, or 0.04%, to 42,330.15. The S&P 500 added 0.42% and closed at 5,762.48. Both indexes closed at records. The Nasdaq Composite rose 0.38%, ending at 18,189.17.
Stocks rallied into the close, erasing losses seen after commentary from Fed Chair Jerome Powell. He said Monday that more decreases could be forthcoming, but cautioned that the central bank did not have a preset path. If the economy moves as expected, he said to expect two rate cuts of a quarter percentage point each remaining this year.
“This is not a committee that feels like it’s in a hurry to cut rates quickly,” Powell said.
S&P 500, 1 month
Despite the session’s choppiness, stocks still finished the trading month and quarter with gains.
Markets had a rough start to what is historically the weakest month for the stock market, but rebounded as the Federal Reserve cut interest rates by a supersized half point. In the month, the Dow advanced 1.9%, and the S&P 500 added 2%. The tech-heavy Nasdaq gained 2.7% in September.
Stocks struggled at multiple points in the third quarter, leading investors to question whether 2024’s big gains had staying power. Notably, the three-month period contained the Aug. 5 global market rout, during which the Dow plummeted more than 1,000 points.
But investors were ultimately able to climb those walls of worry, with the Dow finishing the quarter more than 8% higher. The S&P 500 and Nasdaq have added about 5.5% and 2.6%, respectively, since July began.
“The bull market has survived the year’s historically weakest quarter,” said Emily Bowersock Hill, CEO of Bowersock Capital Partners. “It is likely to remain intact through at least the end of the year, as earnings remain strong, interest rates are moving lower and consumers are still spending.”
Though investors are broadly optimistic heading into the final stretch of the year, October has a troubling history for markets. It’s known as a time of extreme volatility, with some of the more notable Wall Street drawdowns occurring during the month.
Later this week, market participants will monitor closely watched labor data for insights into the health of the economy.
