© Reuters. FILE PHOTO: Traders work at the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/File Photo
By Lewis Krauskopf, Ankika Biswas and Shashwat Chauhan
Reuters path for interest rates.
Investors are grappling with benchmark Treasury yields rising to 16-year highs after the Federal Reserve laid out a hawkish outlook on long-term rates. Last week, the S&P 500 posted its biggest weekly drop since March.
There is a “tug of war” between investors who seem increasingly concerned about ‘higher for longer’… and bulls who are wondering if perhaps we have seen the correction and can start building from these higher levels. high,” said CEO Chuck Carlson. at Horizon Investment Services.
According to preliminary data, the S&P 500 gained 17.92 points, or 0.41%, to close at 4,337.98 points, while the Nasdaq Composite gained 59.86 points, or 0.45%, to close at 13,271. .66. The Dow Jones Industrial Average rose 39.81 points, or 0.12%, to 34,003.65.
Among S&P 500 sectors, energy led the way. The defensive consumer staples sector fell.
As the third quarter nears the end, investors said market moves may be relatively muted until companies report their quarterly results in the coming weeks.
“There is less urgency to aggressively buy pullbacks in a rising world for longer and that is what the market will have to deal with in the coming months,” said Angelo Kourkafas, senior investment strategist at Edward Jones.
Throughout the week, investors will closely monitor data, including August durable goods and personal consumption expenditures price index, and second quarter gross domestic product, as well as comments from policymakers. Fed policymakers, including Chairman Jerome Powell.
Chicago Fed President Austan Goolsbee said in an interview with CNBC on Monday that keeping inflation above the Fed’s 2% target remains a bigger risk than tight central bank policy that slows inflation. economy more than necessary.
In company news, Amazon.com shares rose after the e-commerce giant said it will invest up to $4 billion in startup Anthropic to compete with growing cloud rivals in artificial intelligence.
