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US stocks rose to records on Monday after Fed Chairman Jerome Powell commented on the economy.
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Powell emphasized the strength of the economy and recalibrated expectations for rate cuts.
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Investors are also looking to the release of key employment figures this week for further market direction.
US stocks rose on Monday, with the Dow Jones and S&P 500 closing at record highs as investors digested new comments from Federal Reserve Chairman Jerome Powell.
All three major indexes rose higher in late trading after Powell’s comments on the strength of the U.S. economy.
“This is not a committee that feels like it’s in a rush to cut rates quickly,” Powell said in a Q&A with the National Association for Business Economics, discussing the strength of the broader economy.
“Overall, the economy is in solid shape,” Powell said in his prepared remarks. “We plan to use our tools to keep it there.”
Powell’s comments recalibrated expectations for rate cuts in the market.
According to the CME’s FedWatch Tool, markets now see a 35% chance of a 50 basis point rate cut at the Fed’s November FOMC meeting, up from 53% on Friday.
“We’re not on any particular course,” Powell said. “The risks are two-sided and we will continue to make our decisions one meeting at a time.”
Here’s where the US indexes stood at 4pm on Monday:
Beyond the Fed’s comments, investors are preparing for a wave of employment data this week.
Tuesday’s job openings data, Wednesday’s ADP employment report, Thursday’s initial unemployment claims, and Friday’s September jobs report are on the docket for investors to peruse this week.
Economists expect about 145,000 jobs will be added to the economy in September, with the unemployment rate holding steady at 4.2%.
Here’s what else happened today:
In commodities, bonds and crypto:
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West Texas average crude rose slightly 0.18% to $68.30 per barrel. Brent crude oilthe international benchmark, rose 0.43% to $71.85 per barrel.
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Gold fell 0.59% to $2,652.30 an ounce.
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The yield on ten-year government bonds rose by 4 basis points to 3.795%.
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Bitcoin fell 3.18% to $63,527.
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