In an optimistic turn, US benchmark equity indexes displayed upward momentum intraday as investors remained expectant for the forthcoming release of the Federal Reserve's minutes from its September monetary policy meeting. The Dow Jones Industrial Average experienced a commendable rise of 0.9%, reaching 42,479.7, while the S&P 500 witnessed a 0.6% increase to 5,784.4.
The Nasdaq Composite also saw a growth of 0.4%, advancing to 18,259.9. Diving deeper into the sector performance, the financials and consumer discretionary categories emerged as the primary beneficiaries of this rally, demonstrating significant gains, whereas communication services encountered the most severe decline. The anticipation builds as the minutes from the Federal Open Market Committee's September meeting are slated for release at 2 PM ET today.
This meeting marked a pivotal moment as policymakers decided to reduce interest rates by 50 basis points. This adjustment represents the first cut since March 2020. Notably, the FOMC's Summary of Economic Projections indicated a revision in members' forecasts, lowering the median federal funds rate projections from 2024 through 2026 while simultaneously increasing unemployment rate expectations. Following the interest-rate decision made last month, Dallas Fed President Lorie Logan commented that a “more gradual path back to a normal policy stance will likely be appropriate from here to best balance the risks to our dual-mandate goals.” In related treasury yields, the US 10-year yield climbed by 3.2 basis points to reach 4.07% intraday, whereas the two-year rate also increased by three basis points, settling at 4.01%. In corporate news, Norwegian Cruise Line Holdings Ltd.
($NCLH) enjoyed a remarkable surge of nearly 11%, making it the top gainer on the S&P 500 after Citigroup upgraded the stock from neutral to buy, while also elevating its price target from $20 to $30. Carnival Corporation & plc ($CCL, $CUK) followed closely, enjoying a 7.3% increase and adjusting its price target from $25 to $28 according to Citigroup. Conversely, Boeing Company ($BA) saw a decline of 2.6%, marking the steepest drop on the Dow and one of the worst performances on the S&P 500.
This downturn came after the plane manufacturer confirmed the withdrawal of its latest pay offer to striking workers, indicating a breakdown in negotiations with the International Association of Machinists and Aerospace Workers. Additionally, on the commodities front, West Texas Intermediate crude oil prices decreased by 1.1%, reaching $72.79 a barrel.
According to expert analysis from D.A. Davidson, “Oil prices declined as strong supply concerns countered disruption risk from the Middle East conflict and Hurricane Milton.” On the economic side, recent reports revealed that mortgage applications fell for the second consecutive week. The Mortgage Bankers Association indicated that the 30-year fixed rate for conforming loan balances has risen to its highest level since August. Lastly, in market trading on precious metals, gold decreased by 0.4% to $2,625.60 per troy ounce, while silver saw a slight increase of 0.2%, reaching $30.66 per ounce..