S&P 500 Closes at Record Highs Once Again Despite Hawkish Powell

Stock markets continue to display strong bullish momentum, with the S&P 500 reaching a new record high today here it closed the day. During the US session, we saw a dip in stock prices after Jerome Powell’s less dovish comments and the pushback on another 50 bps rate cut by the FED, but the buying picked up again and the SPX index closed at record highs.

S&P 500 Chart Daily – Heading for 5,800 Points

Last week’s Chinese monetary stimulus promises helped boost risk markets, with fiscal stimulus details revealed over the weekend and today. China has already initiated these measures, reducing the down payment requirement for first-time homebuyers to 15% and for second homes to 20%, following last week’s announcement.

Meanwhile, in the U.S., the market reacted negatively to Jerome Powell’s comments, but end-of-quarter buying helped offset the impact. Apple (AAPL) stood out with a 1.20% gain in the tech sector, lifting investor sentiment toward consumer electronics, despite an overall uncertain outlook. However, the semiconductor sector saw a sharp decline, with Nvidia (NVDA) down 2%, and other major players like Broadcom (AVGO) dropping by 1.20%, and Advanced Micro Devices (AMD) declining by 0.50%. This reflects a broader weakness in semiconductor stocks amidst mixed market signals.

Daily Gains for Main US Stock Indices (Close):

• S&P 500: +0.4% – Modest gains as investors responded to economic data and Powell’s comments, supported by tech sector strength.
• Nasdaq Composite: +0.4% – Boosted by positive performance in tech stocks, especially Apple and major semiconductors.
• Dow Jones Industrial Average (DJIA): Flat – Mixed performance in industrials and financials kept the index steady.
• Russell 2000: +0.2% – Small-cap stocks saw slight gains amid broader market uncertainty.

Quarterly Gains for Main Global Stock Indices (Q3 End):

• S&P 500: +4.9% – Solid quarterly performance driven by tech resilience, despite mid-quarter volatility.
• Nasdaq Composite: +1.9% – Lower gains due to pressure on growth stocks, though tech managed to stay positive.
• Russell 2000: +8.3% – Strong gains for small-cap stocks, reflecting optimism in domestic growth.
• TSX Composite (Canada): +9.3% – Leading global indices as commodity prices stabilized and energy stocks surged.
• FTSE 100 (UK): +0.9% – Lagging behind other major indices due to economic uncertainty in the UK, despite some recovery in energy and consumer sectors.
• CAC 40 (France): +6.0% – Strong quarterly showing thanks to gains in luxury goods and industrial sectors.
• Nikkei (Japan): +8.5% – Boosted by monetary stimulus measures and positive sentiment around Japan’s economic policies.
• Shanghai Composite (China): +12.5% – Outperforming most indices globally, bolstered by fiscal and monetary stimulus aimed at stabilizing the economy.

These quarterly and daily performances reflect global market shifts, where stimulus measures and central bank decisions play a crucial role in stock gains across different sectors.

S&P 500 Live Chart