Emerging markets have had a good run — the iShares MSCI Emerging Markets ETF is up 7.5% this month — with sentiment given a lift by China's stimulus and the Federal Reserve’s 50 basis point interest rate cut on Sept. 18. And still the sector remains undervalued and underowned, according to a team of analysts at JPMorgan.

U.S. stocks closed another record-setting week with a muted performance Friday, as hope built on Wall Street that the U.S. economy can manage the rare feat of suppressing high inflation without causing a recession.

Chinese stocks posted massive gains over the past five days, yet China’s CSI 300 index remains down from two years ago and well below its post-pandemic high, according to Bespoke Investment Group. “The CSI 300 has surged just over 25% in the last five trading days,

Traders are waiting on the second-quarter GDP revision and weekly jobless claims data to roll out on Thursday. Micron reports earnings after the closing bell.

The Dow plunged nearly 400 points on remarks from Federal Reserve chair Jerome Powell, before correcting and ending the day above the record it set Friday.

Jerome H. Powell, chair of the Federal Reserve, said that inflation is down and unemployment up “significantly,” and that rates will move down “over time.”