On Monday, stocks exhibited a lack of clear direction throughout the trading session before ultimately closing the day mostly higher. The major indices concluded the day in positive territory, following a mixed performance last Friday.
The Dow edged up 17.15 points, or less than a tenth of a percent, to a new record closing high of 42,330.15. Meanwhile, the Nasdaq climbed 69.58 points, or 0.4 percent, to 18,189.17, and the S&P 500 rose 24.31 points, also 0.4 percent, to a new record closing high of 5,762.48.
Initially, stocks came under pressure due to comments from Federal Reserve Chair Jerome Powell but rebounded towards the end of the session.
Powell indicated that the central bank would continue to lower interest rates but emphasized that the path was not predetermined.
He noted that the Federal Reserve's decision to cut rates by 0.5 percent earlier this month reflects increased confidence that a recalibrated monetary policy will support a robust labor market and help achieve the 2 percent inflation target sustainably.
"Assuming the economy progresses as expected, we will gradually move towards a more neutral policy stance," Powell stated. "However, our decisions are not on a preset course. We will assess the risks and decide on a meeting-by-meeting basis."
While Powell’s remarks tempered some optimism about aggressive rate cuts by the Fed in the coming months, they did not eliminate it entirely.
CME Group's FedWatch Tool currently shows a 65.3 percent chance that the Federal Reserve will lower rates by 25 basis points and a 34.7 percent chance of a 50 basis point cut at its next meeting scheduled for November 6-7.
**Sector News**
Despite gains in the broader markets, most major sectors ended the day with only modest movements.
Gold stocks experienced significant weakness, with the NYSE Arca Gold Bugs Index falling by 2.1 percent, driven by a decrease in gold prices.
Telecom and semiconductor stocks also showed some weakness, whereas airline and biotechnology stocks moved higher.
**Other Markets**
In overseas trading, Asia-Pacific stock markets were starkly mixed on Monday. Japan's Nikkei 225 Index dropped 4.8 percent, while China's Shanghai Composite Index surged 8.1 percent.
In Europe, major markets moved downward. The French CAC 40 Index fell 2.0 percent, the U.K.'s FTSE 100 Index declined 1.0 percent, and Germany's DAX Index slipped 0.8 percent.
In the bond market, treasuries came under pressure following Powell's remarks. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, increased by 5.3 basis points to 3.802 percent.
**Looking Ahead**
Trading on Tuesday could be influenced by reactions to reports on manufacturing sector activity and job openings.