Indexes Finish The Quarter Higher – US Market Wrap

The S&P 500’s more than $2.5 trillion rally in the third quarter shrugged off a cautious stance from Federal Reserve Chair Jerome Powell when he signalled he was in no hurry to make further interest-rate cuts.

Stocks rallied in the final minutes of US trading even after Powell said the central bank will lower interest rates “over time,” while re-emphasising that the overall economy remains on solid footing.

Despite weakness earlier in the day, the S&P 500 secured its fourth consecutive quarter of gains, the longest such winning stretch since 2021. The tech-heavy Nasdaq 100 had a similar run.

While gauging the outlook for Fed rate cuts, investors must contend with a cocktail of risks, including rising tensions in the Middle East and a looming dockworkers’ strike in critical US ports Tuesday. Fed’s Goolsbee voiced his concerns about a supply shock if a strike drags on. “That’s going to raise the cost of doing business and lead to shortages,” he told Fox Business.