Wall Street Ends September With Fifth Straight Winning Month/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks are wrapping up September with another winning streak, as the S&P 500 is set for its fifth consecutive monthly gain. Investors are balancing optimism about future Federal Reserve rate cuts with concerns over a possible government shutdown. Economic reports due this week, particularly on jobs, could determine the market’s next move.
Wall Street Winning Month Quick Looks
- S&P 500 on track for fifth straight winning month despite early Tuesday slip.
- Dow and Nasdaq dip slightly in early trading.
- CoreWeave shares jump 15.6% on $14.2 billion Meta cloud deal.
- Oil sector weakens, Halliburton drops 2% as crude prices fall.
- Fed cuts rates for the first time this year, with more expected.
- Upcoming job reports could sway Fed’s path; too strong or too weak data could hurt stocks.
- Potential government shutdown threatens to delay key economic data releases.
- Corporate movers: Vail Resorts falls 4.6%, Lamb Weston rises 6.3%.
- Bond market steady, 10-year Treasury yield eases to 4.12%.
- Global markets mixed, with modest moves in Asia and Europe.
Wall Street Ends September With Fifth Straight Winning Month
Deep Look
Wall Street is closing September in familiar territory: on another winning streak. Despite slipping in early trading Tuesday, U.S. markets remain on track for a fifth consecutive monthly gain, reflecting investor confidence in the Federal Reserve’s interest rate trajectory even as political and economic uncertainties loom.
Market Snapshot
The S&P 500 dipped 0.2% in morning trading, while the Dow Jones Industrial Average lost 27 points, or 0.1%. The Nasdaq composite eased 0.2%. Though modest, the declines did little to shake momentum, with all three major indexes holding near record highs set last week.
Oil-related companies were again under pressure. Halliburton dropped 2% as crude oil prices extended losses, continuing a weak week for the energy sector. By contrast, CoreWeave surged 15.6% after announcing that Meta Platforms had committed to a massive $14.2 billion order for cloud computing services under its existing agreement, a move analysts said highlights the explosive growth of artificial intelligence infrastructure.
Investors Await Key Data
Markets are bracing for a pair of reports expected later Tuesday. One will measure consumer confidence, an indicator of household sentiment amid inflationary pressures and a cooling job market. The second will track job openings at the end of August.
For Wall Street, the data is a delicate balancing act. A job market that appears too strong could temper the Fed’s appetite for further interest rate cuts. A market that looks too weak could raise fears of an impending recession. Either extreme threatens the stock market’s rally, which has surged since April largely on expectations of rate cuts.
The Fed cut rates for the first time this year earlier in September, signaling it expects to ease further through 2026. Officials have positioned the cuts as a way to support hiring and growth after a period of high borrowing costs aimed at taming inflation.
Political Risks in Play
Adding to the market’s unease, Washington is again careening toward a government shutdown. Unless lawmakers strike a deal by midnight Tuesday, thousands of federal workers could be furloughed or laid off, and many government offices shuttered.
Markets have weathered shutdowns before, but this one carries unique risks. A prolonged funding lapse could delay critical economic data — including Friday’s monthly jobs report, one of the Fed’s most important indicators. The Department of Labor has already warned that its Bureau of Labor Statistics would halt operations during a shutdown.
Jennifer Timmerman, investment strategy analyst at Wells Fargo Investment Institute, said a shutdown would likely have “only a small and transitory economic impact” but could increase market volatility. She noted that any dip could present buying opportunities for long-term investors.
Corporate Movers
In corporate earnings, Vail Resorts slid 4.6% after reporting a wider-than-expected quarterly loss and signaling sluggish sales growth for the upcoming ski season. Meanwhile, Lamb Weston, a leading supplier of frozen French fries and potato products, jumped 6.3% after posting stronger-than-expected quarterly profits.
These contrasting results highlight the divergent pressures across industries: leisure companies are contending with shifting consumer spending patterns, while food suppliers are benefiting from steady demand and improved supply chains.
Global and Bond Markets
Global markets offered little direction, with European and Asian indexes delivering mixed but modest moves. In the bond market, the 10-year Treasury yield eased to 4.12% from 4.15% late Monday, reflecting cautious investor sentiment ahead of upcoming data.
The Bigger Picture
Wall Street’s resilience is striking given the backdrop. Inflation remains elevated, political gridlock is intensifying, and corporate earnings are uneven. Critics warn that U.S. stocks may be overpriced after racing to record levels in recent months.
Still, the market’s ability to string together five consecutive winning months suggests investors are betting that the Fed will manage a “soft landing” — cooling inflation without tipping the economy into recession.
Whether that optimism survives the week may hinge on Friday’s jobs report. A “Goldilocks” number — not too hot, not too cold — could extend the rally into October. Anything else could put the brakes on Wall Street’s winning run.
You must Register or Login to post a comment.