Day Traders Diary

9/20/24

The major averages closed mixed after a big run following the Federal Reserve's first rate cut since the pandemic. The Dow Jones Industrial Average rose 38 points after spending most of the day in the red. The S&P 500 fell 11 points while the Nasdaq Composite fell 65 points or 0.36%.

A one day delayed reaction to the rate cut caused investors to put risk back on buying up the tech sector and AI stocks and while adding to banks, real estate and early cyclical stocks.

The three major averages notched weekly gains. The S&P 500 rose 1.36%, posting its fifth positive week over the past six weeks, up more than 19% so far this year. The Dow ended the week higher by 1.62%, while the Nasdaq advanced 1.49%.

On Wednesday afternoon, the Federal Reserve slashed interest rates by a super-sized half-point, its first cut since 2020. The 10-year Treasury yield fell a basis point to 3.73% but rose 8 basis points for the week. The 2-year Treasury note yield fell 2 basis points to 3.58%.