Stocks in New York, United States bid farewell to September and the quarter with fresh records as investors react to Federal Reserve Chair Jerome Powell vowing to keep the economy humming. The S&P 500 rose 0.4% to close at a new record, the Nasdaq Composite gained close to 0.4%, while the Dow Jones Industrial Average finished just above the flatline, securing its latest all-time-high.

Typically a challenging month for stocks, September saw Wall Street indices recording fresh highs as the major gauges notched monthly wins to close out the last trading day of September. The S&P 500 recorded its best year-to-date performance at the end of September since 1997, also enjoying its best quarter since the fourth quarter of 2021.

During the last three months, the Dow led the major indexes’ gains with an increase of 8.2%. The S&P saw a gain of 5.4%, and the Nasdaq added nearly 3%. The Federal Reserve’s interest rate cut and signs of resilience in the US economy lifted confidence, helping stocks post three weekly wins in a row. However, the final trading day of the month and the quarter also witnessed profit-taking and rebalancing.

Investors are now anticipating the September jobs report due on Friday, seen as posing an important test for the recent stock market rally. The pressing question is how quickly the labor market is slowing down as the market weighs whether the Fed has acted aggressively to protect a healthy economy or to support a struggling one.

Federal Reserve Chair Jerome Powell emphasized in a speech that the economy is in solid shape and hinted at not rushing the next round of rate decisions, lowering expectations for another significant rate cut. Powell stated that if the economy unfolds as expected, the Fed will cut interest rates over time toward a more neutral stance. However, he made it clear that the Fed is not in a rush to cut rates quickly.

Overall, investors are optimistic as Wall Street concludes September with record highs, setting the stage for a potentially bullish start to October and continued economic growth. The upcoming economic data, including the September jobs report, will provide further insight into the state of the US economy and its impact on the stock market. As investors navigate through uncertainties, they look to key indicators and comments from Fed officials for guidance on market trends and future investment decisions.