The month of October may be famous for the horrific stock market crashes of 1929, 1987 and 2008. But so far this month, investors have nothing to fear in the Wall Street. Stocks enjoyed another rally on Monday, continuing a hot run for the market this month.
The Dow was up more than 475 points, or 1.6%, in afternoon trading. The Dow has now gained nearly 10% this month, rebounding from steep declines in August and September.
The blue chip industry, which includes Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), McDonald’s (MCD), Disney (DIS) and 25 other giants of the US economy, is still down 13% this year. , however.
But markets have rallied this month on hopes that the Federal Reserve may soon take a break from a series of aggressive attacks to fight inflation. More rate hikes are expected at the Fed’s November 2 and December meetings. However, some expect the Fed to hold off until 2023.
Overall earnings for the third quarter also help bolster the stock.
The S&P 500 rose 1.3% on Monday, and the Nasdaq was also up 0.7%. Both indexes are also making decent gains for October, with the Nasdaq up more than 3% and the S&P up 6%. The S&P and Nasdaq are both still down more than 20% in 2022, however, meaning they are in a bear market.
The Nasdaq was in the green Monday despite the fact that shares of the top Chinese technology market in the US fell on fears of a continuation of China’s current crackdown Now Xi Jinping has confirmed his third term as the country’s leader.
E-commerce company Pinduoduo (PDD) fell more than 25%. Electric car companies Nio (NIO), Xpev and Li Auto all posted losses of two percent. So are the shares of Chinese tech giants Alibaba ( BABA ), Baidu ( BIDU ) and Tencent ( TCEHY ).
American companies with significant exposure to the Chinese market were also hit hard and settled for broader stockpiles.
Tesla ( TSLA ) fell 2%. Starbucks ( SBUX ) is down 6%. Fast Food Yum! The stock ( YUM ) fell 2% while Yum China ( YUMC ), which supplies the KFC, Pizza Hut and Taco Bell brands in China, fell 14%.
Casino owners Wynn Resorts ( WYNN ) and Las Vegas Sands ( LVS ), both of which have properties in Macao’s special administrative zone, also collapsed.