Stock market continues to sizzle this month

New York
CNN Business

The month of October may be famous for the historically worst stock market crashes in 1929, 1987, and 2008. But so far this month, Wall Street has nothing to fear for investors. Stocks posted another strong rally on Monday, continuing a hot streak for the markets this month.

The Dow was up more than 475 points, or 1.6%, in afternoon trading. The Dow is now up nearly 10% this month, recovering from sharp 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 U.S. economy, is down about 13% so far this year. found , though.

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But the market rallied this month on hopes that the Federal Reserve could soon take a break from its series of aggressive rate hikes to fight inflation. More rate hikes are expected at the Fed’s next meeting on November 2, as well as in December. However, some are hopeful that the Fed may pause in 2023.

Strong earnings in the third quarter also helped boost stocks.

The S&P 500 rose 1.3% on Monday, and the Nasdaq was up about 0.7%. Both indexes also posted solid gains in October, with the Nasdaq up more than 3% and the S&P up 6%. The S&P and Nasdaq are still down more than 20% in 2022, which means they are in a bear market.

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The Nasdaq was in the green on Monday, despite several top Chinese technology stocks falling in the United States on fears of a continued Chinese crackdown now that Xi Jinping has secured a 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 double-digit percentage losses. So did top Chinese tech stocks Alibaba ( BABA ), Baidu ( BIDU ), and Tencent ( TCEHY ).

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American companies with significant exposure to the Chinese market were also hit hard and faced a broader market rally.

Tesla ( TSLA ) fell 2%. Starbucks ( SBUX ) fell 6%. Fast food giant Yum! Brands ( YUM ) fell 2%, while Yum China ( YUMC ), which franchises KFC, Pizza Hut and Taco Bell brands in China, fell 14%.

Casino owners Wynn Resorts ( WYNN ) and Las Vegas Sands ( LVS ), both of which own properties in the Chinese special administrative region of Macau, also fell.


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