Wall Street Indexes Climb as Fed Policymakers Signal Further Cuts
Wall Street's main indexes rose on Monday amid choppy trading. Investors focused on Federal Reserve comments and steady factory data following a 50 basis points cut by the central bank. Fed presidents indicated support for more cuts this year. Market expectations remain uncertain. Real estate stocks led gains, while healthcare stocks declined.
Wall Street's main indexes saw gains in volatile trading on Monday, driven by investor attention on Federal Reserve policymakers' statements and steady factory activity data. This follows the Fed's recent decision to initiate monetary policy easing.
The central bank's significant move with an outsized 50 basis points cut last week boosted the main indexes, defying September's typically weak equity performance. Investors closely analyzed comments from Fed officials, including Raphael Bostic, Neel Kashkari, and Austan Goolsbee, who supported further rate cuts this year.
With market bets fluctuating, traders now anticipate a 74 bps reduction by year-end. While U.S. business activity remained steady and prices for goods and services rose at the fastest pace in six months, concerns about inflation continue. Art Hogan of B Riley Wealth highlighted the robustness of the economy despite a slightly softening labor market. As of mid-morning, the Dow and S&P 500 showed modest gains, while the Nasdaq also trended upward.
(With inputs from agencies.)
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