04:25 PM EDT, 09/30/2024 (MT Newswires) -- The Dow Jones Industrial Average and the S&P 500 closed at all-time highs Monday as traders evaluated remarks by Federal Reserve Chair Jerome Powell.

The Dow ticked 0.04% higher to 42,330.2, while the S&P 500 rose 0.4% to 5,762.5. The Nasdaq Composite also increased 0.4% to 18,189.2. Among sectors, energy and communication services saw the biggest gains. Only materials and consumer discretionary closed lower.

For September, the Dow and the S&P 500 gained 1.9% each, while the Nasdaq jumped 2.7%.

Powell said monetary policy is not on a "preset course," with any further adjustment in interest rates to be determined by incoming economic data on a meeting-by-meeting basis.

Earlier this month, the central bank's Federal Open Market Committee cut its benchmark lending rate by 50 basis points versus a Bloomberg-compiled consensus indicating a 25-basis-point reduction.

"Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course," Powell said Monday.

Separately, Fed Governor Michelle Bowman said she preferred a 25-basis-point interest-rate reduction earlier this month as the upside risks to inflation continue to be "prominent," among other concerns.

"I believe that, by moving at a measured pace toward a more neutral policy stance, we will be better positioned to achieve further progress in bringing inflation down to our 2% target, while closely watching the evolution of labor market conditions," Bowman said.

The odds that the FOMC will lower interest rates by 25 basis points in November jumped to 65% Monday from 47% Friday, while the probability of a bigger 50-basis-point reduction fell to 35% from 53%, according to the CME FedWatch tool.

Official data are likely to show Friday that the US economy added 180,000 jobs this month, compared with Wall Street's views for a gain of 130,000, UBS said in a note e-mailed Monday. The consensus is for growth of 146,000 jobs in a survey compiled by Bloomberg. UBS expects the unemployment rate to hold steady at 4.2%, in line with the Street's projections.

Texas manufacturing activity unexpectedly improved in September into shallower contraction territory, while output turned negative, according to the Dallas Fed.

The US two-year yield rose eight basis points to 3.64%, while the 10-year rate increased 4.1 basis points to 3.79%.

In company news, CVS Health's ( CVS ) leadership is facing a challenge by shareholder Glenview Capital in what could be the start of a push to oust management, news outlets reported, citing unnamed sources. CVS shares rose 2.4%, among the top gainers on the S&P 500.

Boeing ( BA ) shares dropped 2.7%, the steepest decline on the Dow. The plane maker's pay-related deal talks with the International Association of Machinists and Aerospace Workers broke off and no further dates for negotiations were scheduled, the union said Friday in a post on X.

Micron Technology ( MU ) was among the worst performers on the S&P 500 and the Nasdaq Monday, down 3.5%.

West Texas Intermediate crude oil was little changed at $68.21 a barrel.

Gold fell 0.6% to $2,653.30 per troy ounce, while silver lost 1.2% to $31.42 per ounce.