Stock market continues to sizzle this month

New York
CNN Business

October may be famous for its terrible history of stock market crashes like in 1929, 1987 and 2008. But until this month, Wall Street investors have nothing to fear. Stocks enjoyed another solid rally on Monday, continuing a hot streak in the markets this month.

The Dow rose 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, which include Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), McDonald’s (MCD), Disney (DIS) and 25 other giants of the American economy, are still falling. about 13% this year. , however.

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

Typically strong earnings for the third quarter also help lift stocks.

The S&P 500 rose 1.3% Monday, and the Nasdaq also rose 0.7%. Both indexes also had good 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, however, which means they’re in a bear market.

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The Nasdaq was in the green Monday despite the fact that shares of some top Chinese tech stocks trading in the United States fell on fears of continued crackdowns in China now that Xi Jinping is cementing a third term as leader of the country.

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 are shares of top 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 and are sitting on the broader market rally.

Tesla (TSLA) fell 2%. Starbucks ( SBUX ) fell 6%. Giant fast food Yum! 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 ), both of which have assets in China’s special administrative region of Macao, also fell.


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