Stock market movement largely positive in October this year

Published by: Edward Anderson

The October stock market is known for its significant declines over the years, most notably in 1929, 1987 and 2008.

However, the stock market successfully managed to avoid similar crashes in 2022.

Wall Street investors have nothing to fear as the month closes.

The market continued its streak from October on Monday and recorded another strong rally.

Stocks

The Dow Jones closed up more than 420 points (1.3%) on Monday.

Additionally, the Dow Jones rose almost 10% in October, recovering from the sharp falls in August and September.

However, blue-chip industrials and other giants of the US economy remain 13% down this year, including:

Apple (AAPL)
Microsoft (MSFT)
Coca-Cola (KO)
McDonald’s (MCD)
Disney (DIS)

Federal Reserve

The market rebounded this month, hoping the Federal Reserve would reverse its aggressive rate hikes to fight inflation.

Strong interest rate hikes are expected during Fed meetings on November 2 and later in December.

However, some people hope the Fed can suspend rate hikes next year.

The solid third-quarter results also help strengthen stocks.

The bear market

The S&P 500 rose 1.2%, while the Nasdaq gained 0.9% on Monday.

Both indexes also posted decent gains for October.

The Nasdaq is up more than 3.5%, while the S&P 500 is up almost 6%.

Unfortunately, the S&P 500 and Nasdaq are still down more than 20% each this year, putting them in a bear market.

The Nasdaq was in the green zone on Monday, which is better positioned than others.

The Chinese market and other stocks

Several leading Chinese tech stocks trading in the US fell on fears of a crackdown in China.

The crackdown stemmed from news that Xi Jinping will serve for a third term as China’s leader.

Meanwhile, the e-commerce company Pinduoduo (PDD) lost more than 25%.

Electric vehicle manufacturers and significant Chinese tech stocks reported double-digit loss rates, including:

Nio (NIO)
Xpev
Li Auto
Alibaba (BABA)
Baidu (BIDU)
Tencent (TCEHY)

Tesla shares fell 1.5%, while Starbucks fell 5.5%.

The fast food giant Yum! Brands (YUM) fell 2%, while Yum China (YUMC) fell 14%.

Yum China distributes several popular food chains in China, such as:

KFC
Pizza Hut
Taco Bell

Wynn Resorts and (WYNN) and Las Vegas Sands (LVS), casino owners that have properties in Macau, also fell.

Reference:

October surprise? Stocks continue to sizzle this month

Opinions expressed by The Chicago Journal contributors are their own.

Bear Market, Blue chip, Featured, Federal Reserve, Inflation, Market, Rate hike, S&P 500, Stock, Stock Market, Tech, Wall Street

With a degree in finance from the University of Boston, Edward has been writing as a contirbutor in this industry for the last 6 years. His articles provide readers with insights into the world of business and finance, including investment strategies and market trends.