The US stock market experienced a positive day on Monday, with the S&P 500 index climbing to a new closing high. This bullish trend continued the momentum from last week, where all three major indices saw gains. The S&P 500 gained around 1.4% for the week, marking a total increase of over 19% in 2024. The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite also recorded positive weekly gains, rising around 1.6% and 1.5%, respectively.
Despite the overall positive market performance, the economic data painted a mixed picture. The S&P Global manufacturing Purchasing Managers’ Index (PMI) declined to 47 in September, signaling a contraction in the manufacturing sector. This reading was below market estimates of 48.5. Additionally, the S&P Global flash composite PMI, which measures activity across both manufacturing and services, also slipped to 54.4 in September from 54.6 in August, indicating a slight slowdown in overall economic growth.
While most sectors on the S&P 500 closed in the green, with energy, consumer discretionary, and real estate stocks leading the gains, healthcare and communication services sectors bucked the trend and ended the session lower. The Dow Jones closed at 42,124.65, up around 61 points. The S&P 500 finished the day at 5,718.57, representing a 0.28% increase. The Nasdaq Composite gained 0.14%, closing at 17,974.27.
The CNN Money Fear and Greed index, which measures market sentiment, remained in the ‘Greed’ zone on Monday. The index currently stands at 64.4, up slightly from the previous reading of 63.9. The Fear & Greed Index is based on seven indicators and reflects the overall market sentiment, with higher readings signaling higher greed and lower readings representing greater fear.
Investors are now looking ahead to earnings reports from companies like AAR Corp and Red Cat Holdings, Inc., which are expected to be released today. These reports could provide further insight into the current state of the market and the direction of future trends.
