Stock market continues to sizzle this month


New York
CNN Business

October may be famous for historically terrible stock market crashes such as those in 1929, 1987 and 2008. But so far this month, there is nothing for investors to fear in Wall Street. Stocks enjoyed 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 late afternoon trading. The Dow has now gained nearly 10% this month, rebounding from steep drops in August and September.

Industrial blue chips, including Apple ( AAPL ), Microsoft ( MSFT ), Coca-Cola ( KO ), McDonald’s ( MCD ), Disney ( DIS ) and 25 other giants of the US economy, are still down 13% year that. , though.

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But the market rallied this month on hopes that the Federal Reserve may soon take a break from its 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. Still, some hope that the Fed can take a break in 2023.

Especially strong earnings for the third quarter will help support the shares as well.

The S&P 500 rose 1.3% Monday, and the Nasdaq was up 0.7% as well. Both indexes are also sporting decent gains for October, with the Nasdaq up more than 3% and the S&P up 6%. The S&P and Nasdaq are each still down more than 20% in 2022, though, which means they’re in a bear market.

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The Nasdaq was in the green on Monday despite the fact that shares of several major Chinese technology stocks traded in the United States plunged due to fears of a continued crackdown by China now that Xi Jinping has cemented a third term as the nation’s leader.

E-commerce company Pinduoduo (PDD) plunged more than 25%. Electric car companies Nio ( NIO ), Xpev and Li Auto all posted double-digit loss rates. So did shares in the top Chinese technology Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY).

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American companies with heavy 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%. Fast food giant Yum! Brands (YUM) fell 2% while Yum China (YUMC), which franchises KFC, Pizza Hut and Taco Bell brands in China, plunged 14%.

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

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