The Federal Reserve lowered interest rates this month, leading to a mixed response by the stock market. At first, stocks enjoyed the news. With the Fed lowering rates by 50bps, optimism grew about the easing monetary policy. There is still plenty of concern over inflation though. Economic data of late has shown that inflation is slowing down, a positive signal for the stock market. 

Globally, there is plenty of uncertainty to consider. Are we still in an economic slowdown? This is one question our US data will continue to guide us with. The world still has plenty of geopolitical tensions which lead to volatility. How will the rest of the year go with the current situation in Ukraine? What will China's economic data come in at? 

The S&P 500 has experienced one of its best performances in decades through the first three quarters of 2024. 

Things to watch going into Q4:

The upcoming election and any activity leading up to it.

Overseas conflicts.

Data from other powerful governments. 

Also, traders should continue to keep an eye on the “Magnificent Seven” stocks(Apple(AAPL), Microsoft(MSFT), Alphabet(GOOGL), Amazon(AMZN), Nvidia(NVDA), Meta(META) and Tesla(TSLA). With the large market share held by these seven stocks, they can move the market with ease. 

I'm anticipating a volatile Q4 with plenty of opportunities for investors to capitalize on the market's current conditions. I'd take a conservative approach as we get closer to the US election.

Disclaimer: Past performance is not indicative of future returns. Opinions are my own. Profitable trades are not guaranteed.