U.S. stocks closed at fresh all-time highs on Monday, wrapping up a successful month and quarter as major indices rallied amid lower interest rates.
During the regular session, the Dow Jones Industrial Average ticked 17.2 points higher to settle at 42,330.2, the S&P 500 rose 0.4%, closing at 5,762.5 and the Nasdaq Composite advanced, gaining 0.4% to finish at 18,189.2.
Stocks rallied towards the end of the session, reversing earlier losses prompted by remarks from Federal Reserve Chair Jerome Powell. Powell suggested that more interest rate cuts could be on the horizon.
"This is not a committee that feels like it’s in a hurry to cut rates quickly," Powell stated, adding that two additional quarter-percentage-point cuts are possible if economic conditions remain stable.
The strong finish to the trading day marks the conclusion of a volatile but ultimately positive month and quarter for U.S. markets. After a rocky start to September, traditionally the weakest month for stocks, markets bounced back following a substantial half-point rate cut by the Federal Reserve.
Later this week, investors will be closely monitoring labor market data for additional insights into the health of the economy.
On the bond markets, 10-year and 2-year rates were at 3.787% and 3.645%, respectively.
