The S&P 500 Index ($SPX) (SPY) today is up +0.08%, the Dow Jones Industrials Index ($DOWI) (DIA) is down -0.28%, and the Nasdaq 100 Index ($IUXX) (QQQ) is up +0.08%. September E-mini S&P futures (ESU25) are up +0.07%, and September E-mini Nasdaq futures (NQU25) are up +0.06%.
Stock indexes are mostly higher today, with the S&P 500 and Nasdaq 100 posting new all-time highs. Strength in technology stocks is supporting gains in the broader market, led by a rally in semiconductor stocks. Also, expectations that the Fed will cut interest rates at the conclusion of the 2-day FOMC meeting that begins today are underpinning stock prices.
Signs that US consumer spending is holding up are a positive factor for the economy and equity markets after Aug retail sales rose more than expected. However, stocks fell back from their best levels after bond yields rose on the stronger-than-expected US retail sales and manufacturing production reports.
US Aug retail sales rose +0.6% m/m, stronger than expectations of +0.2% m/m. Also, Aug retail sales ex-autos rose +0.7% m/m, stronger than expectations of +0.4% m/m.
The US Aug import price index ex-petroleum rose +0.2% m/m, slightly stronger than expectations of +0.1% m/m.
US Aug manufacturing production unexpectedly rose +0.2% m/m versus expectations for a -0.2% m/m decline.
Most major US benchmark indexes, including the S&P 500, the Dow Jones Industrials, and the Nasdaq 100, continue to post record highs, driven by expectations of Fed interest rate cuts. Weak labor market news and relatively contained inflation reports bolstered expectations for at least a -25 bp rate cut by the Fed at the Tue/Wed FOMC meeting and a total of -70 bp of rate cuts by year’s end.
The markets this week will continue to focus on any fresh trade or tariff news. Later today, the Sep NAHB housing market index is expected to rise by +1 to 33. On Wednesday, the FOMC is expected to cut the federal funds rate target by -25 bp to 4.00%-4.25% from 4.25%-4.50% and Fed Chair Powell will deliver post-FOMC meeting…
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