Stock Market Recap: Mixed Close on Friday, September 27, 2024
Major Indexes Performance
As the trading week came to a close on Friday, September 27, 2024, the U.S. stock market displayed a mixed performance. The Dow Jones Industrial Average (^DJI) emerged as the day’s winner, gaining 0.5% and reaching a new record high. However, the S&P 500 (^GSPC) remained relatively flat, ticking just below the breakeven point after achieving its third record-high close earlier in the week. The tech-heavy Nasdaq Composite (^IXIC) faced some headwinds, declining 0.2% by the end of the session.
Key Economic Data and Market Drivers
The day’s trading was significantly influenced by the release of crucial economic data. The Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation metric, showed continued cooling in price pressures. The core PCE index rose just 0.1% month-over-month, coming in lower than Wall Street forecasts. This encouraging inflation report spurred market expectations for potential rate cuts from the Fed in the near future.
Investor sentiment was further bolstered by a slight beat in consumer confidence for September, with a reading of 70.1 surpassing the projected 69.4. These positive economic indicators have cemented growing conviction that the Fed might achieve a “soft landing” as it embarks on its rate-cutting campaign.
Notable Stock Movements
Several individual stocks made significant moves throughout the day:
1. Bristol Myers Squibb (BMY): Shares rose over 3% following FDA approval of its new oral medication for schizophrenia in adults.
2. Costco (COST): The stock slipped about 2% after the company’s fiscal fourth-quarter revenue slightly missed analysts’ expectations.
3. Nvidia (NVDA): The chipmaker’s shares declined nearly 3%, leading a broader pullback in the semiconductor sector.
4. Alibaba Group Holding (BABA), PDD Holdings (PDD), and JD.com (JD): These Chinese stocks continued their upward trajectory, benefiting from China’s recent economic stimulus measures.
Upcoming Market Events
Investors should keep an eye on several key events that could impact the market in the coming days:
1. Continued analysis of the PCE data and its implications for future Fed policy decisions.
2. Ongoing developments in China’s economic stimulus efforts and their effects on global markets.
3. Upcoming corporate earnings reports, which will provide further insights into company performances and economic health.
Market Outlook
As we move into the final quarter of 2024, the market appears to be on solid footing. The major indexes are on track for weekly gains, with investor confidence buoyed by signs of cooling inflation and resilient economic growth. However, challenges remain, including ongoing geopolitical tensions and the need for careful navigation of the Fed’s monetary policy.
In conclusion, while Friday’s session ended with mixed results, the overall market sentiment remains cautiously optimistic. Investors will continue to closely monitor economic indicators and central bank actions as they position themselves for the remainder of the year.
