Dow Stock Raises Above 200 Points Following The Economic Data

On Thursday, September 29, The Dow Jones Industrial reached a record high of over 200 points,  as Wall Street attempted to recover from a sharp sell-off earlier this month. US economic data raised hopes that the Federal Reserve will cut interest rates in September. 

“The Size Of The Beat This Time Was Much Smaller”

The 30-stock Dow Jones Industrial Average climbed 243.63 points, or 0.59%, to close at a new record of 41,335.05, gains in Goldman Sachs, Intel, and Visa helped the blue-chip to a new high. 

Meanwhile, the S&P 500 finished slightly below the flatline at 5,591.96, and the Nasdaq Composite fell 0.23% to close at 17,516.43.

According to CME Group’s FedWatch Tool, 

In September, traders expect the Fed will cut rates by 25 basis points. The odds of a 50 basis point cut may decrease further following the recent data. 

“Death, taxes, and NVDA beats on earnings are three things you can bank on. Here’s the issue, the size of the beat this time was much smaller than we’ve been seeing. Even future guidance was raised, but again not by the tune from previous quarters,” wrote Ryan Detrick, chief market strategist at Carson Group, reported NBC News. 

Consumer Spending Has Increased 

Nvidia, the AI leader dropped 6.4%, dragged down both the S&P 500 and the Nasdaq. Despite the decline, the AI chipmaker exceeded expectations on both revenue and earnings in its fiscal second quarter. 

“This is a great company that is still growing revenue at 122%, but it appears the bar was just set a tad too high this earnings season,” Detrick added.

Consumer spending in the US increased in July and it is being estimated that the economy remains strong with a moderate rise in prices.  

“Investors are seeing another sign of being in a soft landing. It’s another one of those Goldilocks kind of reports really threading a needle right down the center. The market is really getting exactly what it wanted,” said Cameron Dawson, chief investment officer at Newedge Wealth, reported in the New York Post. 

Follow Wat-Not on Facebook, Twitter, and Instagram