S&P 500 ends third quarter with big gains on hopes of further interest rate cuts By Investing.com

Investing.com — The S&P 500 ended higher on Monday, ending the third quarter with sizable gains, supported by the prospect of further interest rate cuts as Fed officials continue to signal further easing.

By 4 p.m. ET (2000 GMT), the index was up 0.3 percent, up 17 points, or 0.04 percent, the index was 0.4 percent higher. The S&P 500 rose 5 percent for the quarter, rebounding from a major sell-off in global markets on Aug. 5 that was triggered by recession worries, which have since eased after a flurry of positive economic data.

Powell says rate cuts are not on a set course

Federal Reserve Chairman Jerome Powell said monetary policy was not on a set course, although he signaled further interest rate cuts were likely if the economy continued to progress as expected.

“Looking forward, if the economy performs broadly as expected, policy will shift to a more neutral position over time. But we are not on a set course,” he told the National Association for Business Economics in prepared remarks.

The comments came on the heels of Atlanta Fed President Raphael Bostic signaling on Monday that he was open to supporting another 50 basis point cut in the key rate if the labor market showed unexpected weakness.

Labor market data, including jobless claims and private payrolls, will likely be in focus this week as investors await the release of the October report on Friday, with economists expecting the US economy to add 144,000 jobs.

Stellantis cuts annual forecasts; Nio jumps at the cash injection

On the corporate front, shares of Stellantis (NYSE: ) fell more than 12% after the auto giant, known for brands such as Chrysler, Dodge and Jeep, cut its full-year guidance and said it would burn more cash than expected, citing worsening industry trends, higher costs to overhaul its US business and Chinese competition in electric vehicles.

Shares in AT&T (NYSE: dollars, marking his exit from a business that has seen declining profits.

Shares of CVS Health ( NYSE: .

Insurance brokerage Marsh & McLennan (NYSE: ) said Monday it has agreed to buy smaller rival McGriff Insurance Services for $7.75 billion, as the industry braces for higher policy spending by companies on background of an improved economic outlook.

Nio Inc Class A ADR (NYSE: ), meanwhile, pared some gains to close 2% higher after the Chinese electric vehicle maker said its Nio China business would receive a 13.3 billion yuan investment. yuan from Nio, strategic investors offering about 3.3 billion yuan. .

Gross gains as Israel steps up attacks

Oil prices rose on Monday on the possibility of a widening Middle East conflict after Israel intervened to say the US was preparing for a limited ground invasion of Lebanon as part of the next phase of its conflict with Iran-backed Hezbollah.

Both contracts fell last week as concerns about demand grew after fiscal stimulus from China, the world’s second-largest economy and oil importer, failed to reassure market confidence.

(Peter Nurse contributed to this story)