by Caroline Valetkevitch

NEW YORK (Reuters) – The New York Stock Exchange ended mixed on Monday, with the Nasdaq finishing higher in the wake of Nvidia’s gains, as investors remained concerned about the possibility that the Federal Reserve (Fed) will maintain high interest rates for longer than expected.

The Dow Jones index fell 0.22%, or 74.15 points, to 33,433.35 points.

The broader S&P-500 gained 0.34 points, or 0.01%, to 4,288.39 points.

The Nasdaq Composite advanced 88.45 points (0.67%) to 13,307.77 points.

At the end of its monetary policy meeting on September 19 and 20, the Fed indicated that it could raise interest rates again as it struggles to bring inflation back towards the 2% objective.

Governor Michelle Bowman said she would be willing to vote for another rate hike if economic data showed slow or insufficient progress in the fight against inflation.

“We ended September with a market that was shrouded in uncertainty,” said Quincy Krosby, a strategist at LPL Financial in Charlotte, North Carolina, as all three major Wall Street indexes posted declines last month, as during the previous two months.

“At the start of this new month, it is a market which requires confirmation that the gains are going back (…) and which needs to determine the path on which the Fed is embarking,” she added.

Investors continue to remain attentive to the trajectory of bond yields, whose rise today is linked to the agreement reached in the US Congress to avoid a partial closure of federal administrations (“shutdown”) on Sunday, which has reduced appetite for debt ahead of key labor market data expected on Friday.

Among the major sectors of the S&P-500, rate-sensitive utilities experienced the largest decline, falling by 4.7%, the first time for the sector since April 2020. Energy also declined significantly. , while technologies marked an increase of 1.3%.

On the stock side, Nvidia increased by 2.9% after an increase in its recommendation by Goldman Sachs. Tesla ended up 0.6% despite third-quarter deliveries falling short of market expectations.

( Jean Terzian)

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