Stock Market Today: S&P 500 and Dow Hit Record Highs Amid Economic Optimism
Major Indexes Surge as Investors Await Key Economic Data
On Thursday, October 10, 2024, the U.S. stock market continued its bullish trend, with the S&P 500 and Dow Jones Industrial Average reaching new record highs. Investors displayed optimism ahead of crucial economic data releases and the upcoming earnings season.
As of 2:00 PM EDT, the S&P 500 (^GSPC) was up 0.5%, trading at all-time high levels. The Dow Jones Industrial Average (^DJI) rose 0.8%, while the Nasdaq Composite (^IXIC) gained 0.3%. This positive momentum builds upon the previous session’s significant gains, reflecting growing investor confidence in the economy’s strength.
Market Movers and Shakers
Large-cap technology stocks showed mixed performance. Nvidia (NVDA) experienced a slight dip, while Meta Platforms (META) and Alphabet (GOOGL) also lost ground. However, Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) saw gains in recent trading.
Boeing (BA) shares declined nearly 3%, leading Dow decliners, following a breakdown in talks between the company and the union representing striking workers.
In the social media sector, Reddit (RDDT) shares climbed after Jefferies initiated coverage with a “buy” rating, citing the platform’s success in Google search results and its AI use cases. The stock was up 2% at $72.15, marking a 43% gain since its IPO in March.
Upcoming Market Events and Economic Data
Investors are eagerly anticipating the release of September’s Consumer Price Index (CPI) report, scheduled for 8:30 AM EDT on Friday, October 11. Economists polled by Dow Jones expect a 0.1% increase on a monthly basis and a 2.3% advance over the prior 12 months. This data will be crucial in informing the Federal Reserve’s next steps on monetary policy at its November meeting.
The earnings reporting season is set to kick into high gear on Friday, with several large banks releasing their quarterly results. Additionally, Tesla’s (TSLA) robotaxi event on Thursday is expected to attract significant interest from investors and industry analysts alike.
Federal Reserve Watch and Interest Rate Expectations
Market participants are closely monitoring comments from Federal Reserve officials and analyzing the minutes from the Fed’s last policy meeting. The central bank cut its benchmark lending rate last month for the first time in four years and indicated that more cuts are forthcoming. However, the pace and depth of these cuts will depend on incoming economic data.
Fed funds futures trading data suggests a roughly 70% likelihood of a quarter-point cut at the November meeting, according to CME Group’s FedWatch tool. This represents a shift in expectations, as the possibility of a 50 basis point cut is now considered off the table.
Bond Market and Commodity Trends
The yield on 10-year Treasurys rose to 4.07%, up from 4.03% the previous day, reaching its highest level since early August. This increase reflects scaled-back expectations for aggressive rate cuts in the coming months, particularly following last week’s stronger-than-expected jobs report.
In the commodities market, crude oil futures were down about 1%, continuing the previous day’s 4% decline. Concerns about potential supply disruptions due to Middle East conflicts have moderated temporarily. Gold futures saw a slight dip, trading around $2,630 an ounce, while bitcoin hovered near $61,700.
Looking Ahead
As the stock market continues to reach new heights, investors remain cautiously optimistic. The upcoming CPI report, bank earnings releases, and ongoing geopolitical developments will likely play crucial roles in determining market direction in the short term. With major indexes showing resilience and key economic indicators on the horizon, market participants will be watching closely for signs of continued economic strength and potential shifts in Federal Reserve policy.
