CNBC Business News Update - Markets Midday: Stocks Extend Rally, S&P 500 Hits Record High, Fed Officials Argue Over 1/4 vs. 1/2 Point Cut

Episode Date: October 9, 2024

The latest in business, financial and market news and what it means for your money, reported by CNBC's Peter Schacknow

I'm Peter Schachnow, CNBC. Fed officials were united on the need to ease interest rates at their most recent meeting, that according to the just-released minutes of that gathering. But there was disagreement over whether to cut rates a quarter point or a half point, the Fed ultimately deciding on the bigger cut. The major averages pretty much where they were before the release of the minutes. The Dow up 350 points at 42,430. The S&P 500 gaining a half percent or 27 points and hitting a record high earlier in the session. The Nasdaq getting

a third of one percent or 62 points. One issue for investors these days has been the shifting opinions on whether the economy is growing steady or headed for recession. Michael Darda, chief economist at Roth Capital Partners, says that's because the data has been so volatile. So the question here is, is this it? Did the Fed just simply succeed and they nailed it? Or are the lags just longer? Are there some risks out there? I think, unfortunately, markets and a lot of economists are getting swung around by these monthly jobs figures, which have been a bit volatile, right? I mean, the July jobs data that came out in early August set off recession alarm bells. And that, of course, was followed by last Friday's much stronger than expected September jobs report.

Among today's Wall Street winners, FedEx is up 1.7 percent, UPS higher by 1.8 percent. Citi issued a buy rating on those and other transportation stocks, saying an oversupply of shipping capacity following the end of the pandemic has now moderated and that the sector is poised for outperformance. Reddit is up 1.9% after Jeffries began coverage of the social media company with a buy rating, saying it sees operating earnings doubling over the next two years. Peter Schach now, CNBC. Overtime's about understanding what just happened in the markets that day and preparing for tomorrow.

I'm looking to talk to all investors, sophisticated investors, beginning investors. I'm always learning. Closing bell overtime for Eastern CNBC.