On Monday, the stock market experienced a significant upswing, with both the Dow Jones Industrial Average and the S&P 500 achieving all-time highs. Nvidia was at the forefront, soaring by almost 3% to finish at over $138 per share for the very first time. The Nasdaq Composite, known for its tech focus, also rose by nearly 0.9%.
Positive sentiment among investors was driven by anticipations of potential interest rate decreases by the Federal Reserve. While a 50 basis point cut in November appears improbable, data indicating stable producer prices in September bolstered predictions of a 25 basis point drop. Semiconductor stocks stood out as top performers, with the Philadelphia Semiconductor Index climbing by 1.8%.
Significant strength was also observed in housing, airline, utilities, and banking sectors. Federal Reserve governor Christopher Waller noted the need for caution regarding the Fed’s future decisions, asserting that the recent strong job market and unexpected inflation necessitate a more cautious approach to rate cuts.
Surge in Dow Jones and S&P 500
In related remarks, Minneapolis Fed president Neel Kashkari indicated that “modest” rate reductions are likely in the “upcoming quarters.” He highlighted that although the job market is robust, an immediate downturn seems unlikely. In other developments, Goldman Sachs revised its growth projections for China upward, observing that Beijing appears inclined to make more aggressive fiscal moves to rejuvenate its economy. The bank adjusted its full-year GDP forecast for China from 4.7% to 4.9%.
The rise in Bitcoin, which increased over 5% to surpass $65,700 per coin, contributed to the uplift of crypto-related US stocks. Coinbase shares surged by more than 8%. Additionally, Trump Media & Technology Group’s stock continued its upward trend, rising as much as 9% as betting odds improved for a Trump victory in the forthcoming November election.
Moreover, the company revealed the launch of its Truth+ TV streaming service on Android devices. Overall, the robust performance of the stock market on Monday was reinforced by widespread gains across various sectors, as investors kept their attention on forthcoming earnings announcements and the Federal Reserve’s next steps regarding interest rates.
