Market Commentary - Foreign Markets
US stocks end mixed as focus turns to Fed rate decision As on : 17-Sep-24  10:54

U.S. stocks ended on a mixed note on Monday as investors looked ahead to the Federal Reserve's monetary policy announcement later this week, and stayed largely cautious and selective with regard to their moves. Among the major averages, the Dow hit a new record high and ended up 228.30 points or 0.55 percent at 41,622.08, and the Nasdaq closed lower by 91.85 points or 0.52 percent at 17,592.13, while the S&P 500 settled at 5,633.09 with a small gain of 7.07 points or 0.13 percent. The Fed is widely expected to lower interest rates, but there remains some debate about the size of the rate cut.

Tech stocks were the worst hit, with Apple shares dropping 2.8% on concerns over weaker demand for the iPhone 16. Chipmakers, which helped fuel the market's recent recovery, also slid as investors reduced their positions, leading to 2% declines for Nvidia and Broadcom. On the flip side, the energy and financial sectors outperformed, led by a 1% rise in Chevron and 1.7% increase in JP Morgan shares.

On the economic front, the Federal Reserve Bank of New York released a report today showing regional manufacturing grew for the first time in nearly a year in the month of September. The New York Fed said its general business conditions index surged to a positive 11.5 in September from a negative 4.7 in August, with a positive reading indicating growth. With the sharp increase, the index returned to positive territory for the first time since hitting a positive 9.1 last November. The much bigger than expected increase by the headline index partly reflected a significant turnaround by new orders, as the new orders index spiked to a positive 9.4 in September from a negative 7.9 in August.

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