Stocks posted broad-based gains Tuesday, helped by commentary from Federal Reserve officials downplaying the odds of another interest rate hike at the next Fed meeting.
A bullish forecast from a consumer staples bellwether and the kick off of Amazon.com's (AMZN) fall sale for Prime subscribers also helped boost risk sentiment.
In a week packed with speeches and commentary from central bank officials, Atlanta President Raphael Bostic on Tuesday sounded a dovish note toward future interest rate policy. Bostic said that rates are currently high enough to get the economy back to the Fed's 2% inflation target.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"The CME FedWatch Tool currently projects an 88% chance that the central bank will hold rates steady at its next meeting, up from 72% last week and 53% one month ago," notes Argus Research.
Rapidly rising global interest rates hampered equities in the earlier part of the month, but stabilizing yields have helped markets post gains for three straight sessions.
"Equity markets have been underpinned by a reprieve in yields and crude oil prices," writes Quincy Krosby, chief global strategist for LPL Financial. "Financial markets are keenly focused on the release of key inflation-related data this week."
As to that last point, note that the September Consumer Price Index is slated for release on Thursday, Oct. 12.
In single-stock news, as mentioned earlier, Amazon kicked off its fall sale for Prime subscribers, and markets approved by adding $13 billion in value to the company's market capitalization. But the real star of Tuesday's show was Pepsico (PEP), which jumped more than 2.4% at one point on an intraday basis.
The soft drinks and snacks maker topped Wall Street's third-quarter earnings and revenue forecasts, and offered a full-year outlook toward the higher end of its outlook. Shares in PEP have been under pressure this year amid concerns over the potential impact of weight loss drugs such as Ozempic and Mounjaro on the company's business.
By the closing bell, the Dow Jones Industrial Average rose 0.4% to 33,739, while the broader S&P 500 added 0.5% to 4,358. The tech-heavy Nasdaq Composite gained 0.6% to end at 13,562.
Seasonality improves from here
The market's recent strength in face of heightened geopolitical uncertainty and rising oil prices shouldn't be too much of a surprise given that we're exiting the seasonally weakest period for equities, experts say.
"From a market standpoint, we are also entering a better period," writes Brad McMillan, chief investment officer for Commonwealth Financial Network. "While September is historically the weakest month of the year, the fourth quarter has been notably better, which may be a tailwind moving forward. The solid economic foundation and improving seasonal factors may give us better results through the end of the year."
Indeed, investors should be pleased to know that, historically, we're about to enter one of the seasonally strongest periods for equities. Have a look at the above chart, and you'll see that since 1928, the S&P 500 has delivered an average price gain of 0.9% in November, 1.3% in December and 1.2% in January, according to Yardeni Research.
Related content
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Top Tech Gifts to Grab at Walmart Before ChristmasBig savings on Apple, Bose, HP, Vizio and more while there's still time to shop.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market Today
The major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
-
Stocks Bounce Back With Tech-Led Gains: Stock Market TodayEarnings and guidance from tech stocks and an old-school industrial lifted all three main U.S. equity indexes back into positive territory.
-
Dow Slides 427 Points to Open December: Stock Market TodayThe final month of 2025 begins on a negative note after stocks ended November with a startling rally.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
Dow Adds 314 Points to Thanksgiving Rally: Stock Market TodayInvestors, traders and speculators enjoy the best Thanksgiving Week gains for the major stock market indexes in more than a decade.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
