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Stock Market News for Sep 10, 2024

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U.S. stocks closed higher on Monday as investors bought the dip after stocks tumbled last week to record the worst week in more than a year while they hoped that the Federal Reserve’s rate cut would help the economy rebound. All three major indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) jumped 1.2% or 484.118 points, to close at 40,829.59 points.

The S&P 500 rose 1.2% or 62.63 points, to end at 5,471.05 points. Consumer discretionary, technology, financials and industrial stocks were the biggest gainers.

The Technology Select Sector SPDR (XLK) gained 1.6%. The Consumer Discretionary Select Sector SPDR (XLY) and Financials Select Sector SPDR (XLF)  each rose 1.5%. The Industrials Select Sector SPDR (XLI) also added 1.5%. All the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq advanced 1.2% or 193.77 points to finish at 16,884.60.

The fear-gauge CBOE Volatility Index (VIX) was down 13.05% to 19.45. Advancers outnumbered decliners on the NYSE by a 2.16-to-1 ratio. On the Nasdaq, a 1.58-to-1 ratio favored advancing issues.

Stocks Rebound to Start Fresh Trading Week

Stocks rebounded on Monday after a massive selloff last week that saw all three major indexes suffering their worst week of the year. Last week, fresh concerns grew after softer-than-expected jobs data raised concerns over the economy’s health.

The S&P 500 recorded its worst week since March 2023, while the Nasdaq saw its steepest weekly decline since 2022.

On Monday, investors came back with a fresh mindset as they tried to gauge the Federal Reserve’s plans for rate cuts. Technology stocks which suffered the most last week, were the biggest gainers on Monday as investors bought the dip.

Shares of Amazon.com, Inc. ((AMZN - Free Report) ) gained 2.3%, while Microsoft Corporation ((MSFT - Free Report) ) rose 1%. Netflix, Inc. ((NFLX - Free Report) ) advanced 1.5%. Microsoft carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Investors are now awaiting two key inflation reports that could play a major role in the Federal Reserve’s rate cut decision at its Sep 17-18 FOMC meeting. The consumer price index and producer price index reports will be out on Wednesday and Thursday morning, respectively.

The Federal Reserve is expected to cut interest rates by 25 basis points but several market participants are hopeful that it could also be as big as 50 basis points following the release of the jobs report that showed signs of a cooling labor market.

No major economic data was released on Monday.


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