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Traders work on the floor at the New York Stock Exchange on Sept. 9, 2024.
Brendan Mcdermid | Reuters
The S&P 500 rose Monday, as traders looked to build on the sharp gains seen last week following the Federal Reserve’s interest rate cut.
The broad market index added 0.21%, while the Nasdaq Composite ticked up 0.13%. The Dow Jones Industrial Average gained 62 points, or 0.15%.
The moves come after a winning week on Wall Street that centered around the Federal Reserve’s decision to lower interest rates by 50 basis points, its first cut in four years. Despite some choppiness following the initial announcement, stocks rallied in the days following.
On Friday, the Dow closed at a record, which was notably above 42,000. All three of the major indexes added more than 1% for the week, during which the S&P 500 also reached new records.
Investors parsed fresh economic data on Monday, including a 15-month low reading for PMI manufacturing activity in the U.S. for August.
To be sure, traders will be vigilant for any economic data that could dampen hopes for a soft landing. Weekly jobless claims data on Thursday will give Wall Street further insight into the state of the economy and labor market.
“Investors have been working under the assumption that a softening in labor markets was driving Fed policy, and have placed a heavy emphasis on relatively-small changes in non-farm payrolls reports, but it is possible that this assumption is misplaced,” Karl Schamotta, chief market strategist at Corpay, wrote on Monday. “And if it is, the volatility roadmap could be redrawn.”
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