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The S&P 500 hit a record high Tuesday as the market awaited the Federal Reserve’s key interest rate cut decision.
The Dow Jones Industrials index gained 81.92 points to 41,704, hitting a new all-time record.
The much broader index regained 19.12 points to 5,652.21, after touching an all-time high.
The S&P 500’s move to an all-time high comes during a historically tough period for the market. September has been the worst month for the benchmark over the last 10 years, averaging a 1.3% monthly loss, according to FactSet data.
The NASDAQ recovered 118.51 points to 17,710.63.
Microsoft rose 1.3% after the tech giant hiked its quarterly dividend by 10.7% to 83 cents per share. The company also approved a $60 billion buyback program. Intel shares jumped more than 5% after the company said it plans to make its foundry business a subsidiary. The Biden administration also awarded the company up to $3 billion in funding through the Chips Act.
The latest retail sales data indicated solid consumer health. Retail sales rose 0.1% in August versus economists’ estimates for a 0.2% decline, according to Dow Jones. Excluding autos, the number also came in at a 0.1% increase, which slightly missed the 0.2% consensus forecast.
While a 50-basis-point cut isn’t out of the question, the chief global strategist thinks that the Fed should take a more cautious approach to cutting and ease rates by 25 basis points. She is forecasting additional 25-basis-point cuts in November and December.
Prices for the 10-year Treasury sagged, hoisting yields to 3.64% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.31 to $71.40 U.S. a barrel.
Gold prices swooned $16.50 to $2,592.40.
