 
The S&P 500 closed August with a gain of 3.7%, overcoming periods of panic selling to finish just 0.3% below its all-time high set in July. The Nasdaq Composite and Dow Jones Industrial Average also recorded solid performances, each rising by 3%, indicating robust momentum across major indices.
Focus on Federal Reserve Policy
Investors are turning their attention to the Federal Reserve’s anticipated interest rate decision in September. The Fed is expected to cut borrowing costs for the first time since 2020, with a predicted reduction of 25 basis points from the current 5.5%. Some analysts, however, speculate that a more aggressive 50 basis point cut may be considered.
Key Economic Indicators
Markets will reopen after Labor Day, with key data points, including the nonfarm payrolls report, shaping early September trading. Analysts forecast 164,000 new jobs added in August and a slight dip in the unemployment rate to 4.2%, which could influence the Fed’s policy stance.
September 18 Meeting in Focus
The Federal Reserve’s meeting on September 18 is poised to be a critical moment for markets. The decision on interest rates is expected to drive volatility, providing traders with significant opportunities as they navigate the evolving economic landscape.
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