The S&P 500 ended a turbulent August on a positive note, gaining 3.7% despite swings and bouts of panic selling throughout the month. ...
The S&P 500 ended a turbulent August on a positive note, gaining 3.7% despite swings and bouts of panic selling throughout the month. This performance leaves the index just 0.3% shy of its all-time high set in July. The Nasdaq Composite and Dow Jones Industrial Average also posted gains of 3% each for the month, reflecting broad strength across major indices.
As markets gear up for September, investors are anticipating increased volatility, particularly with the Federal Reserve's upcoming decision on interest rates. The Fed is widely expected to reduce borrowing costs for the first time since 2020, with most analysts predicting a 25 basis point cut from the current 5.5%, a 23-year high. However, some are speculating that the Fed might opt for a more aggressive 50 basis point reduction.
The month kicks off with Labor Day, giving U.S. markets a brief pause before trading resumes on Tuesday. Key data points, including the nonfarm payrolls report, are slated for early September, with analysts forecasting 164,000 new jobs added in August and a slight decrease in the unemployment rate to 4.2%.
All eyes are now on the Fed's September 18 meeting, where the rate decision could set the tone for market movements in the coming weeks, offering traders a range of opportunities amidst expected volatility.
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