US stocks are back to their record-setting ways
The S&P 500 traded within a narrow range and closed up 0.3% for another record close on Monday. The Nasdaq 100 also gained 0.3%, while the Russell 2000 was down 0.3%. So far, major indices are poised for a monthly advance, defying a historical pattern of a seasonally weak September.
Federal Reserve officials reiterated their support for last week’s 50 basis-point rate cut in comments. Minneapolis Fed President Neel Kashkari, for example, said that “the risk of a further weakening of the labor market” warranted a cut of that magnitude.
Flash purchasing manager index readings showed that manufacturing growth slowed down slightly in September, while the services equivalent came in above expectations.
7 out of 11 S&P 500 sector ETFs advanced, with consumer discretionary leading the way. Health care, technology, financials, and communication services suffered retreats.
Tesla led S&P 500 gainers with a 4.9% gain. Analysts at Barclays expected Tesla to report third-quarter delivery numbers next week that are better than consensus, while Bank of America analysts said that Tesla’s robotaxi event on Oct. 10 could be a catalyst for stock.
Among other individual movements, GM lost 1.7%, on news that Bernstein analysts downgraded the stock to “market perform” from “outperform.” Intel added 3.3% after Bloomberg reported that Apollo had offered the company a $5 billion deal.
Treasury yields edged higher.
