On Monday, US equities saw a modest uptick, with both the Dow Jones Industrial Average and the S&P 500 achieving new peak values. The Dow increased by 0.2%, while the S&P 500 rose by 0.3%. The Nasdaq Composite experienced a minor gain of 0.1%.
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— LyondellBasell (@LyondellBasell) September 23, 2024
The #StockMarket reached new highs for the first time in two months following a rate cut by the #FederalReserve and strong economic reports.
AI has been a significant contributor to the gains, appearing in unexpected sectors. Get essential insights here. $CEG $VST $NKE #Gold https://t.co/vEkqCDILXo
— TradeStation (@TradeStation) September 23, 2024
Intel was the leading performer in the Dow, climbing 3.3% after news surfaced that Apollo Global Management proposed an investment of up to $5 billion in the semiconductor giant. Tesla topped the S&P 500 and Nasdaq, soaring nearly 5% as analysts identified potential catalysts that may enhance the electric vehicle manufacturer’s prospects. Trading on Monday saw limited economic data, although a more substantial influx is anticipated in the coming days.
This doesn’t quite add up:
This week, the Fed initiated rate cuts with a significant 50 basis point decrease, the first of this magnitude since 2008.
Even just a week before this decision, market expectations heavily leaned towards a mere 25 basis point reduction.
Was there external pressure on the Fed for a more aggressive cut?
(a thread)
— The Kobeissi Letter (@KobeissiLetter) September 21, 2024
Traders are carefully monitoring indications of an economic soft landing and the continued likelihood of additional interest rate cuts from the Federal Reserve. Several Fed officials addressed the market on Monday, stressing the need for caution in gauging the timeline for further reductions.
Interest rate cuts and market advancements
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— Tony Sycamore_IG (@Tony_Sycamore) September 23, 2024
Notable figures from the Fed such as Minneapolis Fed President Neel Kashkari, Atlanta Fed President Raphael Bostic, and Chicago Fed President Austan Goolsbee shared their perspectives. More officials, including Chair Jerome Powell, are set to address the public later this week. In other market developments, Bath & Body Works saw a 3.6% increase after analysts minimized concerns related to ocean freight challenges facing the retailer.
Conversely, Regeneron Pharmaceuticals plunged 4.6%, marking the lowest performance in the S&P 500, following a court ruling that dismissed the company’s bid to block a competing version of its Eylea drug. Biohaven shares surged after the firm reported encouraging results from trials of its new treatment for a rare neurological condition, with plans to file a New Drug Application to the FDA in the fourth quarter.
Novo Nordisk’s shares in the U.S. dipped ahead of a Senate hearing focusing on the costs associated with its weight-loss medications, Wegovy and Ozempic. CEO Lars Fruergaard Jorgensen is expected to testify regarding the steep prices of these treatments compared to those in other nations. Super Micro Computer’s stock continued its ascent on Monday, following an earlier announcement of a stock split intended to broaden its accessibility to investors.
