US stocks edged higher on Monday, with the Dow Jones Industrial Average and S&P 500 closing at record highs. The Dow rose 0.2%, while the S&P 500 gained 0.3%. The Nasdaq Composite added 0.1%.
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— LyondellBasell (@LyondellBasell) September 23, 2024
The #StockMarket made new highs for the first time in 2 months after the #FederalReserve cut interest rates and economic data remained strong.
AI continued to drive the gains, but in unusual places. Get key insights here. $CEG $VST $NKE #Goldhttps://t.co/vEkqCDILXo
— TradeStation (@TradeStation) September 23, 2024
Shares of Intel led the Dow’s gains, rising 3.3% after reports that Apollo Global Management offered to invest up to $5 billion in the chipmaker. Tesla was the biggest gainer in the S&P 500 and Nasdaq, surging nearly 5% as analysts highlighted potential catalysts that could boost the electric vehicle maker. The economic data calendar was light on Monday but is expected to pick up significantly in the coming days.
Something doesn't add up here:
This week, the Fed started rate cuts with a 50 basis point cut for the first time since 2008.
Even 1 week prior to the decision, market odds overwhelmingly supported at 25 basis point cut
Was the Fed pressured into a larger rate cut?
(a thread)
— The Kobeissi Letter (@KobeissiLetter) September 21, 2024
Investors will be watching closely for signs that the economy is headed for a soft landing and that the Federal Reserve will continue to cut interest rates. Several Fed officials spoke on Monday, emphasizing caution in determining the pace of rate cuts.
Fed cuts and stock market gains
Our latest thoughts on what comes next for #WallStreet
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— Tony Sycamore_IG (@Tony_Sycamore) September 23, 2024
Minneapolis Fed President Neel Kashkari, Atlanta Fed President Raphael Bostic, and Chicago Fed President Austan Goolsbee were among the speakers. More Fed officials, including Chair Jerome Powell, are scheduled to speak later in the week. In other market news, Bath & Body Works added 3.6% after analysts downplayed the impact of ocean freight issues on the retailer.
Regeneron Pharmaceuticals dropped 4.6%, the worst performance in the S&P 500, after a judge rejected the company’s attempt to block a similar version of its drug Eylea. Biohaven shares soared after the biotech firm announced positive results from a study of its experimental treatment for a rare neurological condition. The company plans to submit a New Drug Application to the FDA in the fourth quarter.
Novo Nordisk’s U.S.-listed shares slipped ahead of a Senate hearing on the costs of the company’s popular weight-loss drugs Wegovy and Ozempic. CEO Lars Fruergaard Jorgensen is scheduled to testify on the high prices of the treatments compared to other countries. Super Micro Computer shares rose again on Monday ahead of a previously announced stock split, which is expected to make the stock more accessible to a wider range of investors.
