October 2024

The 50 basis points rate cut by the Federal Reserve in September represented a shift from “higher for longer” monetary policy and provided the fuel to sustain the market rally with all major indices rising through month-end. With a more accommodative monetary policy in place, investor sentiment turned positive, and the S&P 500 made multiple new highs during the month. Despite a backdrop of rising geopolitical risks and an upcoming presidential election, the VIX Index, commonly referred to as the fear gauge, suggests that investors may have turned somewhat complacent with the index declining to the mid-teens by month end. For the full month of September, the Dow Jones Industrial Average increased by 1.9%, the S&P 500® index was up 2.0%, and the smaller cap-weighted Russell 2000® increased by 0.6%.

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