Investing.com -- The S&P 500 closed higher Monday, wrapping up the third-quarter with sizeable gains, buoyed by the prospect of further interest rate cuts as Fed officials continue to signal further easing ahead.
By 4:00 p.m. ET (2000 GMT), the S&P 500 index was up 0.3%, the Dow Jones Industrial Average was up 17 points, or 0.04%, the NASDAQ Composite index was 0.4% higher. The S&P500 is up 5% for the quarter, rebounding after a major Aug. 5, global markets selloff, which was triggered by recession concerns, which have since diminished following a slew of positive economic data.
Powell says rate cuts aren't on preset course
Federal Reserve chairman Jerome Powell said that the monetary policy isn't on a preset course, though signaled that further rates cuts are likely should the economic continued to progress as expected.
“Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course,” he told the National Association for Business Economics in prepared remarks.
The remarks arrived on the heels of Atlanta Fed President Raphael Bostic signaling on Monday that he was open to backing another 50 basis point rate cut should the labor market show unexpected weakness.
Labor market data including jobless claims and private payrolls will likely take center stage this week as investors await the release of the October nonfarm payrolls report on Friday, with economists expecting the US economy to have added 144,000 jobs.
Stellantis cuts annual forecasts; Nio jumps on cash injection
On the corporate front, Stellantis (NYSE:STLA) stock slumped over 12% after the auto giant, known for brands such as Chrysler, Dodge and Jeep, slashed its annual forecasts and said it would burn through more cash than expected, citing worsening trends in the industry, higher costs to overhaul its U.S. business and Chinese competition on electric vehicles.
AT&T (NYSE:T) stock rose 0.5% after the telecom giant announced Monday that it plans to sell its 70% ownership in satellite TV provider DirecTV to private equity firm TPG for $7.6 billion, marking its exit from a business that has seen dwindling returns.
CVS Health (NYSE:CVS) stock rose 1.5% after the Wall Street Journal reported that Glenview Capital, a major shareholder of the pharmacy company, is expected to meet with CVS’s leadership to propose fixes for the struggling business.
Insurance brokerage Marsh & McLennan (NYSE:MMC) said on Monday it has agreed to buy smaller rival McGriff Insurance Services for $7.75 billion, as the industry gears up for higher spending on policies from businesses amid an improving economic outlook.
Nio Inc Class A ADR (NYSE:NIO), meanwhile, cut some gains closing 2% higher after the Chinese EV maker said that its Nio China business is set to receive a 13.3B yuan investment from Nio, with strategic investors providing about 3.3B yuan.
Crude gains as Israel escalates attacks
Oil prices edged higher Monday on the possibility of a widening Middle East conflict after Israel stepped reportedly told the U.S. that it was preparing for a limited ground invasion of Lebanon as part of the next phase of its conflict with Iranian-backed Hezbollah.
Both contracts fell last week as demand worries increased after fiscal stimulus from China, the world's second-biggest economy and top oil importer, failed to reassure market confidence.
(Peter Nurse contributed to this story)