New Record High in Dow Jones, Nasdaq Retreats

Following a perfect week with five bullish days, today the main US market indices started the week bullish, with Dow Jones making a new all-time high, but the Nasdaq index retreated instead. Last week, both core US CPI (consumer inflation) and core PPI (producer inflation) came in slightly higher than anticipated, showing some persistence in inflation.

Stock Market Performance

However, the market seemed to overlook this development. Currently, the probability of a 50 basis point rate cut by the Federal Reserve stands at around 65%, which has helped sustain positive risk sentiment. Despite inflationary pressures, markets remain optimistic, and many stocks have maintained their bullish momentum.

Dow Jones Chart Daily – The Bullish trend Continues

The Dow Jones Industrial Average closed at a record high, while the S&P 500 continues to rally, closing in on its previous all-time high after six consecutive days of gains. In contrast, the NASDAQ ended its five-day winning streak, closing lower for the day. Apple shares were a notable drag on the index, falling nearly 3% following reports of weaker-than-expected demand for its latest iPhone model.

US Indices Closing Summary

• Dow Jones Industrial Average: Gained 228.30 points, or 0.55%, closing at 41,622.08.
• S&P 500 Index: Rose by 7.07 points, or 0.13%, ending the day at 5,623.09.
• NASDAQ Index: Fell by 91.85 points, or -0.52%, finishing at 17,592.13.

The Dow and S&P extended their gains, while the NASDAQ saw a decline, mainly impacted by a drop in tech stocks like Apple. Meanwhile, the Empire State Manufacturing Index report highlighted a solid recovery in the manufacturing sector, with significant gains in new orders, shipments, and unfilled orders, while employment metrics and capital expenditure expectations are mixed.

September New York Fed Manufacturing Survey

September New York Fed Manufacturing Survey

• General Business Conditions: 11.5 (up from -4.7) – Best since April 2022.
• New Orders: 9.4 (improved from -7.9).
• Shipments: 17.9 (up from 0.3).
• Unfilled Orders: 2.1 (recovered from -7.4).
• Delivery Times: -1.1 (slightly better than -3.2).
• Inventories: 0.0 (from -10.6).
• Prices Paid: 23.2 (versus 23.4 prior).
• Prices Received: 7.4 (slightly lower from 8.5).
• Number of Employees: -5.7 (up from -6.7).
• Average Employee Workweek: 2.9 (much better from -17.8).
• Supply Availability: Remains unchanged at -2.1.

Six-Months Ahead Expectations

• Future Business Conditions: 30.6 (up from 22.9).
• Future New Orders: 39.9 (strong improvement from 24.8).
• Future Capital Expenditures: -2.1 (down from 8.5).

Dow Jones Index Live Chart