US indexes edge higher to records as Powell talks up strength of the economy

Chip Somodevilla/Getty Images; BI

US stocks rose to records on Monday after Federal Reserve Chair Jerome Powell’s commented on the economy.
Powell emphasized the economy’s strength and recalibrated interest rate cut expectations.
Investors are also eyeing key employment data releases this week for further market direction.

US stocks rose on Monday, with the Dow and S&P 500 closing at record highs as investors digested new comments from Federal Reserve Chairman Jerome Powell.

All three major indexes moved higher in late trading following Powell’s comments about the strength of the US economy.

“This is not a committee that feels like it’s in a hurry to cut rates quickly,” Powell said in a Q&A chat with the National Association for Business Economics, discussing the strength of the broader economy.

“Overall, the economy is in solid shape,” Powell said in his prepared remarks. “We intend to use our tools to keep it there.”

Powell’s comments recalibrated interest rate cut expectations in the market.

According to the CME’s FedWatch Tool, markets now see a 35% chance of a 50 basis point rate cut at the Fed’s November FOMC meeting, down from 53% on Friday.

“We are not on any preset course,” Powell said. “The risks are two-sided, and we will continue to make our decisions meeting by meeting.”

Here’s where US indexes stood at the 4 p.m. closing bell on Monday:

Aside from Fed comments, investors are preparing for a wave of employment data this week.

Job openings data on Tuesday, the ADP employment report on Wednesday, initial jobless claims on Thursday, and the September jobs report on Friday are on the docket this week for investors to parse through.

Economists expect about 145,000 jobs added to the economy in September, with the unemployment rate staying flat at 4.2%.

Here’s what else happened today:

In commodities, bonds, and crypto:

West Texas Intermediate crude oil was higher slightly by 0.18% to $68.30 a barrel. Brent crude, the international benchmark, was up 0.43% to $71.85 a barrel.
Gold was down 0.59% to $2,652.30 an ounce.
The 10-year Treasury yield was higher by 4 basis points at 3.795%.
Bitcoin was lower by 3.18% to $63,527.