The S&P 500 Index reached a fresh new high October 28, eclipsing the previous high of 3,025 set July 26, 2019. Recent gains have been impressive amid heightened economic and geopolitical uncertainty, and we believe fundamentals are still supportive of stocks. Now that we’ve entered the historically best six-month period of the year for stocks, could more gains be in store?

We have all heard the old Wall Street adage, “Sell in May and go away.” The six-month period from May through October historically has been the worst time of year to own stocks, while the six months between November and April historically

U.S. stocks finally reached new highs in their fourth straight week of gains. On October 28, the S&P 500 Index notched its first record-high close since July after the European Union (E.U.) granted a three-month extension to the United Kingdom’s deadline to leave the E.U. (Brexit). On October 30, the S&P 500 posted a second record high after the Federal Reserve’s (Fed) third rate cut of the cycle. Investors rewarded Fed Chair Jerome Powell’s positive economic messaging and commitment to flexibility, even though he strongly hinted that policymakers may not cut rates again for a while.

Economic data was th

The U.S. labor market stood strong against headwinds in October.

Nonfarm payrolls increased 128,000 last month, higher than consensus estimates for an 85,000 gain. October’s payrolls beat expectations despite a 42,000 slide in automaker payrolls, largely from the General Motors strike. August and September’s job gains were also revised up by 95,000.

As shown in the LPL Chart of the Day, payrolls have grown an average of 175,000 over the past 12 months, around the average pace for this economic expansion.

Solid October jobs data shows the engine of the U.S. economy is humming along despite ele

The Federal Reserve (Fed) could be three and done with interest rate cuts.

On October 30, the Fed reduced interest rates by 25 basis points (0.25%) in its third rate cut of the economic cycle. While the headline decision was dovish, the Fed signaled this could be the last rate cut for a while. The clearest hint was policymakers’ removal of language stating they would “act as appropriate to sustain the expansion.” Going forward, the Fed will now “assess the appropriate path of the target range for the federal funds rate.”

Fed Chair Jerome Powell doubled down on this notion in his post-mee