Stock market continues to sizzle this month

New York
CNN Business

October may be known for devastating stock market crashes like those in 1929, 1987 and 2008. But so far this month, investors on Wall Street have had nothing to fear. Stocks enjoyed another solid rally on Monday, continuing a hot streak for the markets this month.

The Dow was up more than 475 points, or 1.6%, in late afternoon trading. The Dow has now gained nearly 10% this month, recovering from sharp falls in August and September.

The blue chip industries, including Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), McDonald’s (MCD), Disney (DIS) and 25 other giants of the American economy, are still down about 13% this year. , However.

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But the market has emerged this month on expectations that the Federal Reserve may soon take a break from its series of aggressive rate hikes to fight inflation. More big rate hikes are expected at the Fed’s next meeting on November 2 and also in December. However, some expect the Fed to pause in 2023.

Mostly solid earnings for the third quarter are also helping to prop up stocks.

The S&P 500 rose 1.3% on Monday, while the Nasdaq was also up about 0.7%. Both indexes also have good gains for October, with the Nasdaq up more than 3% and the S&P up 6%. However, the S&P and Nasdaq are still down more than 20% in 2022, meaning they are in a bear market.

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The Nasdaq was in the green on Monday despite shares of some top US-traded Chinese tech stocks falling on fears of a continued crackdown by China now that Xi has secured a third term Jinping as the leader of the nation.

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 were shares of Chinese tech giants 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 sat out the broader market rally.

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

Casino owners Wynn Resorts ( WYNN ) and Las Vegas Sands ( LVS ), which both have properties in China’s special administrative region of Macau, also fell.


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