Last Week’s Stock Market Momentum Continues with Nasdaq up 0.72%
The top three stock indices are higher than ever thanks to the new Federal Reserve interest rate cut.
Quick overview
- Stock market indices, including the Nasdaq Composite, Dow Jones, and S&P 500, all marked gains last week and continue to rise this week.
- The recent gains are largely attributed to the Federal Reserve's first interest rate cut of the year, which was a reduction of 25 basis points.
- Key inflation data will be released later this week, which is crucial for investors as it influences Federal Reserve decisions.
- Several stocks, including Tesla, Apple, and Alphabet, are performing exceptionally well, reaching record highs or recovering from previous losses.
Stock market indices all marked gains for last week, and that positive movement is still going as the week begins, with the Nasdaq Composite gaining 0.72% over the last 24 hours.
The Dow Jones added 0.37% as trading started for the week, and the S&P 500 increased by 0.49%. The Nasdaq is up as well, rounding out the top three indices, and the impetus behind these gains can be mostly attributed to the new Federal Reserve interest rate cut.
The stock indices all reached record highs last week, and the Dow and S&P 500 both ended the week higher than ever. This indicates that the stock market is doing very well, but there are other economic factors to consider. One of those will be available later this week.
Inflation Gauge Incoming
On Friday, the personal consumption expenditures price indices will be released. This will tell investors how prices changed in August, and it should be noted that this is one of the top inflation indicators that the Federal Reserve uses.
Inflation remains elevated, but that was not enough to step the Fed from issuing the first rate cut of the year last week- a cut of 25 basis points. That is right in line with expectations, because even though analysts and economists noticed that inflation remained sticky, they expected the Fed to issue a cut after months of debate and pressure.
The personal expenditures index is calculated by the United States Bureau of Economic Analysis. This gauge measures price inflation throughout the country and offers a comprehensive look at how much goods and services cost. The index also provides an account for different purchasing behaviors related to services, and durable and nondurable goods. By using a chain index method, the report can keep up with changes in consumer patterns.
Stocks Performing Well
A large number of stocks are performing very well and achieving record high or near record high numbers right now. Among those is Tesla (TSLA), which managed to erase months of losses when its CEO Elon Musk bought a large number of stocks recently to prove his confidence in the company.
Apple (APPL) continues to perform well despite having a less than stellar product launch earlier in September. The company’s stock value is up 3.2% for Monday and is currently at its highest point for 2025.
Alphabet (GOOGL) is also showing tremendous upward progress despite some setbacks with an ongoing lawsuit. The company has weathered an antitrust lawsuit well and will be able to hold onto its most valuable assets but will need to share some information with its competitors, according to a recent ruling. The company’s stock was up more than 1% on Friday, and the stock value is way higher now than it has been all year long.
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