Stock Market Today: Tuesday, September 17, 2024
The stock market is buzzing with activity today, Tuesday, September 17, 2024, as investors eagerly await the Federal Reserve’s highly anticipated policy decision. Major indexes are showing strong performance, with the S&P 500 climbing 0.4% and hovering just below its record high. The tech-heavy Nasdaq Composite is outpacing its peers with a 0.8% gain, while the Dow Jones Industrial Average has advanced 77 points, or 0.2%, reaching a fresh all-time high.
Market Indexes and Key Movers
Today’s market rally is being fueled by better-than-expected retail sales data and optimism surrounding potential interest rate cuts. Here’s a breakdown of the major indexes and notable stock movements: 1. S&P 500: Up 0.4%, less than 0.5% below its record high 2. Nasdaq Composite: Gained 0.8% 3. Dow Jones Industrial Average: Advanced 77 points (0.2%), hitting a new record Several individual stocks are making waves in today’s trading session:
- Microsoft (MSFT): Shares rose more than 1% after the tech giant announced a 10.7% increase in its quarterly dividend and approved a $60 billion buyback program.
- Intel (INTC): The chipmaker’s stock popped 3.6% following news of plans to make its foundry business a subsidiary and the receipt of up to $3 billion in funding through the CHIPS Act.
Economic Data and Fed Meeting Expectations
The latest retail sales data has injected optimism into the market, indicating solid consumer health ahead of the Federal Reserve’s policy meeting. August retail sales rose 0.1%, surpassing economists’ expectations of a 0.2% decline. This resilience in consumer spending is likely to factor into the Fed’s decision-making process.
Market participants are divided on the size of the potential rate cut, with CME Group’s FedWatch tool indicating:
- 67% chance of a 50 basis point rate cut
- 33% chance of a 25 basis point rate cut
Upcoming Market Events
All eyes are on the Federal Reserve’s two-day policy meeting, which begins today and concludes tomorrow, September 18. This event is crucial as it may mark the first interest rate cut since March 2020, potentially boosting earnings growth for companies that have been grappling with high borrowing costs and inflation. Other significant events to watch include:
- Earnings releases from major companies in the coming days
- Economic data announcements, particularly those related to inflation and employment
- Any surprise policy decisions or forward guidance from the Fed
Corporate News and Stock Movements
In addition to the previously mentioned Microsoft and Intel news, other corporate developments are influencing market sentiment: – Apple (AAPL): Investors are closely watching the tech giant’s stock following the recent iPhone 15 launch event. – Nvidia (NVDA): The AI chip leader continues to be a focus for traders, given its significant impact on market performance throughout2024. – Tesla (TSLA): As always, the electric vehicle manufacturer remains in the spotlight, with any production or delivery updates likely to cause price movements.
Market Outlook
As we move further into the week, market volatility may increase due to the Fed’s decision and its potential impact on various sectors. Investors should stay alert to:
- The Fed’s official statement and press conference
- Any shifts in economic projections provided by Fed officials
- Reactions from international markets, particularly in light of global economic challenges
In conclusion, the stock market is showing strength as it anticipates potential policy shifts from the Federal Reserve. With major indexes near record highs and key economic data surprising to the upside, investors remain cautiously optimistic about the market’s trajectory in the coming days and weeks.