Stock Market Today: Indexes Rise on Cooling Inflation and China Stimulus
Major Indexes Continue Upward Trend
As of Friday, September 27, 2024, the U.S. stock market is showing positive momentum, with major indexes building on recent gains. The S&P 500 (^GSPC) rose 0.1%, marking its third record-high close this week. The Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) both gained around 0.2%.
Inflation Cools, Boosting Rate Cut Expectations
The August reading of the Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation metric, showed continued cooling in price pressures. The “core” PCE index rose 0.1% month-over-month, lower than Wall Street forecasts. This encouraging data has increased market expectations for another significant rate cut from the Fed, with about 52% of traders now anticipating a 50 basis point cut at the next meeting.
China Stimulus Measures Boost Global Markets
China’s recent stream of stimulus measures has had a positive impact on global markets. Mainland Chinese stocks experienced their most substantial weekly gain since 2008, while luxury stocks are set for their best week in years as hopes for Chinese demand rise. Tech giants like Alibaba (BABA), JD.com (JD), and Meituan (MPNGY) saw significant surges amid the buying spree.
Notable Stock Movements
– Micron Technology (MU) led the market higher with a 15% gain following better-than-expected revenue growth and a positive outlook for the current quarter.
– The iShares Semiconductor ETF (SOXX) rose nearly 3.6%, with major chip stocks like Broadcom (AVGO), Advanced Micro Devices (AMD), and Applied Materials (AMAT) rallying.
– Nvidia (NVDA), the AI chipmaker, finished 0.4% higher after early gains of over 3%.
– Meta Platforms (META) hit a record high following new product announcements at its annual Connect conference.
– Costco (COST) stock slipped in morning trading after the wholesale giant’s revenue disappointed Wall Street expectations.
Upcoming Market Events
Investors should keep an eye on several important economic indicators and events in the coming days:
1. Further analysis of the PCE index data and its implications for Fed policy.
2. Earnings reports from major companies across various sectors.
3. Any additional stimulus measures or economic policy announcements from global markets, particularly China.
Market Outlook
The stock market’s positive performance is underpinned by growing confidence in the economy and the Federal Reserve’s ability to achieve a “soft landing” as it embarks on a rate-cutting campaign. The combination of solid GDP readings and cooling inflation has reinforced this optimistic outlook.
As we move forward, market participants will continue to monitor inflation trends, Fed policy decisions, and global economic developments, particularly in China. The interplay between these factors will likely shape market sentiment and drive stock performance in the coming weeks.
In conclusion, the stock market today reflects a cautiously optimistic environment, with investors balancing positive economic indicators against ongoing global challenges. As always, diversification and staying informed about market trends remain key strategies for navigating the dynamic financial landscape.
