Traders on the New York Stock Exchange floor were hard at work on August 8, 2024, as stocks continued to advance in the market’s comeback. Investors were eagerly anticipating the Federal Reserve symposium later in the week, which would provide valuable insights into the path of interest rates.
The Dow Jones Industrial Average saw a gain of 236.77 points, or 0.58%, closing at 40,896.53. The S&P 500 also rose by 0.97% to finish at 5,608.25, while the Nasdaq Composite jumped 1.39% to end at 17,876.77. Notably, both the S&P 500 and Nasdaq achieved their eighth consecutive winning day, a first for both indexes in 2024.
This positive momentum marked an extension of the recent recovery rally, following a choppy period for equities. Last week saw the biggest gains of the year for the three major indexes, signaling a potential shift in market sentiment.
The month of August had a turbulent start, with disappointing data sparking recession fears and concerns about the Federal Reserve’s interest rate policies. This led to a global sell-off, with the S&P 500 experiencing its worst day since 2022 on August 5.
However, fresh data last week helped calm the market, with positive stats on retail sales, initial jobless claims, and strong earnings from companies like Walmart. Additionally, the annualized inflation rate measured in July’s consumer price index reached its lowest level in over three years, further boosting investor confidence.
Greg Marcus, managing director of UBS Private Wealth Management, noted that the market had largely recovered from the earlier recession fears. However, he cautioned that volatility was likely to remain high for the rest of the year, given the mixed economic data and ongoing debate about a potential recession.
Investors were eagerly awaiting insights into the future path of interest rates, with all eyes on Fed Chair Jerome Powell’s speech at the central bank’s symposium in Jackson Hole, Wyoming. In the meantime, traders were set to analyze the minutes from the Fed’s recent meeting, scheduled for release on Wednesday.
In addition to the market developments, the Democratic National Convention was set to kick off on Monday, adding another layer of political and economic significance to the week ahead. Overall, the market’s resilience and positive momentum reflected a cautious optimism among investors, as they navigated through a complex and ever-changing economic landscape.