Wall Street closed out a tumultuous August with solid gains, as both the Nasdaq and S&P 500 indexes rose by over 1% each on Friday. This upward momentum was driven by strong buying in the final hour of trading and a positive reading on a key inflation gauge, setting the stage for potential monetary policy easing by the Federal Reserve.
S&P 500 and Nasdaq See Significant Gains
The S&P 500 (SP500) gained 1.01%, closing at 5,648.38 points, while the Nasdaq Composite (COMP)ended the day up 1.13%, finishing at 17,713.62 points. The Dow (DJI) also posted a 0.55% gain, closing at 41,563.08 points. Notably, the S&P 500 advanced by 2.28% for the month, marking a four-month winning streak.
Economic Indicators and Market Outlook
Investors responded positively to the latest personal consumption expenditures (PCE) price index report, which showed core inflation holding steady, reinforcing expectations of an interest rate cut by the Fed in September. The possibility of a rate cut, whether by 25 or 50 basis points, is now closely tied to the upcoming August nonfarm payrolls data.
Market Movers and Sector Performance
All 11 S&P sectors closed in the green, with energy posting the smallest gains due to a sharp drop in crude oil prices. Intel (INTC) emerged as one of the top gainers, with shares surging 9% following reports of potential strategic shifts within the company, including a possible spin-off of its foundry business.
As September approaches, market sentiment remains cautiously optimistic, with some analysts predicting potential volatility before a year-end rally.
Source: seekingalpha.com
