The Federal Reserve reduced the federal funds rate by 50 basis points (0.50%), bringing it to a range of 4.75 percent to 5.0 percent. This action helped lift the S&P 500 index by 2.0 percent in September. Meanwhile, the yield on the 10-year Treasury Note fell to 3.81 percent, down from 3.91 percent at the end of August, and the price of West Texas Intermediate (WTI) oil dropped by more than $6, settling at approximately $68.31 per barrel by the end of the month.
In our previous update, we noted that “rising geopolitical tensions remain unresolved.” On October 1, 2024, Iran retaliated against Israel for recent strikes in southern Lebanon, further escalating tensions in the Middle East. Although the conflicts between Russia and Ukraine, and Israel and Hamas, have been ongoing, market desensitization should not lead to complacency. A senior White House official also warned that a direct military attack by Iran against Israel would result in severe consequences for Iran.