Stocks rose for a second session on Wednesday, with the S&P 500 and Dow Jones Industrial Average closing at record highs as technology stocks rose and investors shrugged off geopolitical concerns.
of S&P500 After hitting an all-time high, it rose 0.71% to end at 5,792.04. Nasdaq Composite It added 0.6% to end at 18,291.62. 30 shares Dow It soared 431.63 points (1.03%) to a record closing price of 42,512.00.
Technology stocks were the notable leaders of the rally. Amazon and apple It has increased by more than 1%. super microcomputer It rebounded by 4%. Wednesday's advance helped correct a shaky start to October, pushing the major averages into positive territory for the month.
Minutes after the Federal Reserve's September meeting, in which it cut interest rates by 0.5 percentage points, even after it became clear that a “substantial majority of participants” supported a deeper rate cut. , stock prices continued to rise.
S&P 500 year-to-date trends
“The Fed is the key, that's the big driver,” said Mike Bailey, director of research at FBB Capital Partners. “Again, anything can happen at any time. You wake up and there are headlines about hurricanes, energy. I don't think a lot of those risks are priced in at this point. ”
Wednesday's gains came despite lingering concerns about broader wars in the Middle East and disappointing trading in Chinese markets as investors profited from gains from recent stimulus measures. . Registered by Shenzhen, China Worst day since 1997,and iShares China Large Cap ETF (FXI) It has fallen more than 1%. alphabet The stock fell 1.5% on news that the Justice Department is considering disbanding it.
Wall Street is emerging from a strong session thanks to advances in technology and easing oil prices. The moves appear to reflect growing optimism that the Fed can land a soft landing, especially after last week's jobs report showed continued strength in the labor market.
“There is still a tug-of-war between the ‘Big Four’ tailwinds (stimulus, inflation control, resilient growth, healthy corporate performance) and rich valuations…As a result, SPX is facing a sideways price pattern. '', writes Vital Knowledge's Adam Crisafulli.
Indeed, even with an underlying uptrend, markets could face further volatility in what is historically the most volatile month of the year, especially ahead of the U.S. presidential election.
On the economic front, investors are awaiting the release of the September Consumer Price Index and Producer Price Index, which will be released on Thursday and Friday, respectively. Earnings season for major banks begins on Friday. JP Morgan Chase and Wells Fargo.
