S&P 500 Eyes Record High Amid Rate Cut Hopes

The S&P 500 index is set to open at a record high this Thursday, influenced by hopes of interest rate cuts, as traders navigate a session sparse in new data catalysts. Investors, backed by expectations of a dovish Federal Reserve, have largely ignored concerns regarding the U.S. government shutdown.

Central to the Federal Reserve's policy trajectory is the labor market, a crucial part of its mandate. With the government shutdown leading to a data shortage, investors are turning to alternative sources. "I think they will consider the continued weakness in the jobs market trend, which is one of their current mandates," stated Art Hogan, chief market strategist at B. Riley Wealth.

U.S. employers announced reduced layoffs in September, but hiring plans are at their lowest since 2009, according to a report by Challenger, Gray & Christmas. This report followed a softer-than-expected ADP National Employment Report. These reports, although less significant than Labor Department metrics, have begun to fill the gap left by the jobless claims report, which ceased due to the government shutdown. Recent data has encouraged traders to anticipate a 25-basis-point rate cut from the Federal Reserve at its upcoming policy meeting.

(With inputs from agencies.)