Mon Sep 23 21:21:58 UTC 2024: ## US Stocks Rise Modestly as Investors Assess Fed’s Rate Cut Impact

**New York, Sept 23** – US stock markets closed slightly higher on Monday, as investors weighed the implications of the Federal Reserve’s recent rate cut and awaited further clues on future monetary policy.

Following last week’s sharp market rally driven by the Fed’s 50-basis-point interest rate reduction, investors were keen to discern if this was a sign of a sustained upward trend.

Comments from several Fed officials, including presidents Raphael Bostic, Neel Kashkari, and Austan Goolsbee, provided some insights. All three supported the recent rate cut and hinted at further reductions later this year.

While initial market expectations leaned towards a larger rate cut in November following Governor Christopher Waller’s suggestion that inflation data could fall short of the Fed’s 2% target, recent bets have become more balanced. The market currently anticipates a total of 74 basis points in rate cuts by year-end.

Meanwhile, economic data showed steady US business activity in September, accompanied by a six-month high in average prices for goods and services, potentially foreshadowing increased inflation in the coming months.

Sam Stovall, chief investment strategist of CFRA Research, remarked, “I think investors are still just sort of taking a wait-and-see attitude, if indeed a soft landing is the most likely outcome.”

The Dow Jones Industrial Average rose 0.15% to 42,124.65, the S&P 500 gained 0.28% to 5,718.57, and the Nasdaq Composite climbed 0.14% to 17,974.27.

Energy stocks led gains, while healthcare stocks lagged. Tesla jumped 4.65% after a positive announcement, and Meta Platforms rose 0.6% following a price target increase.

All eyes are now on the release of the personal consumption expenditures figure for August on September 27, which will be closely watched as a key indicator of inflation.

Other notable market movers include Intel, which rose 3.05% after reports of a potential investment from Apollo, and General Motors, which fell 1.72% following a downgrade by Bernstein.

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