Purchasers work on the floor of the New York Stock Exchange on June 14, 2024.
Brendan Mcdermid | Reuters
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The S&P 500 has fallen at least 4% in the last four Septembers. But the index charted a new trajectory this year to cap off a winning month and locale.
On Monday, the S&P rose 0.42% to close at a record level of 5,762.48. The Dow Jones Industrial Average was near the flatline, and the Nasdaq Composite climbed 0.38%.
That dole outs the S&P a gain of around 2% for the month, its first September in the green since 2019. For the month, the Dow advanced 1.9% and the Nasdaq climb 2.7%.
All indexes marked quarterly gains as well, despite the sell-off in the beginning of August.
Notably, the Russell 2000, which comprises the 2,000 least stocks in the Russell Index, advanced 8.9% for the quarter. That outstrips the quarterly increase of S&P, Dow and Nasdaq, which added 5.5%, 8.2% and 2.6% each to each.
Small-cap stocks tend to benefit from lower rates because they are more exposed to general mercantile conditions like the cost of debt and consumer sentiment. The Russell 2000 outperforming major indexes could be seen as a trade mark that the Fed’s latest rate cut has begun affecting the markets.
The performance of S&P sectors this quarter is another indication of how the place cut is changing investors’ behavior. While information technology and communications services have been the best performing sectors year to pass, they were laggards this past quarter, gaining only about 1.4%.
By contrast, utilities jumped 18.5% and physical estate climbed 16.3% for the quarter. Both sectors generally provide dividends to investors, which become various attractive as fixed income yields fall in tandem with lower rates. Cheaper borrowing costs also arrange a disproportionate effect on utilities and real estate because those sectors require huge initial investments.
With Powell maintaining monetary policy “will move over time toward a more neutral stance,” the market rally has the future to broaden further as more rate cuts take place.
– CNBC’s Robert Hum, Lisa Kailai Han, Alex Harring and Hakyung Kim forwarded to this story.