Dow and S&P 500 reach new highs

by / ⠀News / October 24, 2024
Dow and S&P 500 reach new highs

The stock market rallied on Monday, with the Dow Jones Industrial Average and S&P 500 reaching new record highs. Nvidia led the charge, surging nearly 3% to close above $138 per share for the first time ever. The tech-heavy Nasdaq Composite also jumped nearly 0.9%.

Investor optimism was fueled by hopes of interest rate cuts from the Federal Reserve. Although a 50 basis point cut in November seems unlikely, data showing unchanged producer prices in September reinforced expectations of a 25 basis point reduction. Semiconductor stocks were among the top performers, with the Philadelphia Semiconductor Index gaining 1.8%.

Housing, airline, utilities, and banking stocks also saw significant strength. Federal Reserve governor Christopher Waller expressed caution about the Fed’s path forward, stating that recent data showing a strong job market and hotter-than-expected inflation warrants proceeding with “more caution” when cutting rates.

Dow Jones and S&P 500 surge

Meanwhile, Minneapolis Fed president Neel Kashkari said “modest” rate cuts are likely in the “coming quarters.” He noted that while the job market remains strong, a rapid weakening does not appear imminent. In other news, Goldman Sachs upgraded its China growth forecast, citing signs that Beijing is willing to spend more aggressively to revive its economy. The bank raised its full-year China GDP forecast to 4.9% from 4.7%.

The rally in Bitcoin, which surged more than 5% to touch above $65,700 per coin, helped boost crypto-related US equities. Shares of Coinbase rose more than 8%. Trump Media & Technology Group stock extended its rally, jumping as much as 9% amid improved betting odds for a Trump victory in the upcoming November election.

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The company also announced the launch of its Truth+ TV streaming service on Android devices. Overall, the stock market’s performance on Monday was bolstered by broad-based gains across sectors, with investors remaining focused on upcoming earnings reports and the Federal Reserve’s next moves on interest rates.

About The Author

Kimberly Zhang

Editor in Chief of Under30CEO. I have a passion for helping educate the next generation of leaders. MBA from Graduate School of Business. Former tech startup founder. Regular speaker at entrepreneurship conferences and events.

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