Investors this week will be eyeing key announcements such as the jobs report, the Federal Reserve rate decision and Apple’s earnings.
on Monday, October 30 Dow Jones Industrial Average (INDEXDJX: .DJI) ended trading at 32,928.96, up more than 511 points or 1.58%. This was the biggest one-day gain by the index since June 2023.
The S&P 500 saw a strong 1.2% rise to 4,166.82, its biggest gain since late August. Simultaneously, the Nasdaq Composite also advanced and rose 1.16% to 12,789.48. This week is big for traders as it will have major announcements like jobs report, Federal Reserve rate decision, etc. apple inc(NASDAQ:AAPL) earnings.
The communication services sector led the way S&P 500 (INDEXSP:.INX) performance, rising more than 2% in its most significant daily gain since the end of August. Mega-cap tech giants Amazon.com Inc (NASDAQ: AMZN) and meta platform (NASDAQ:META) followed with impressive jumps of 3.9% and 2%, respectively.
These developments follow the S&P 500’s recent decline into correction territory last week. Over the course of the week, the broader index saw a 2.5% decline, leaving it more than 10% below its 2023 closing high. Moreover, it continued to decline by 2.8% in October, marking the third consecutive month in the red since the outbreak of the pandemic in 2020. Speaking to CNBC, B. Art Hogan, chief market strategist, Riley Financial Said,
“We closed lower last week. Many times when you feel that kind of negativity over the weekend and nothing new comes out that changes the outlook for the market and the economy, you get some relief on Monday.
“Investors are finally feeling a little more confident that maybe we’ve paid the price for enough bad news and that’s actually manifesting in a strong market today,” he said. couple,
All eyes are on the Fed’s decision
The Federal Reserve’s upcoming decision on Wednesday is highly anticipated, and it is widely expected that the central bank will maintain its current benchmark interest rate. Given that the recent stock market decline has been largely caused by rising interest rates, investors are eager for any signal from the Fed that it may raise rates. Many traders expect the Fed to refrain from further raising rates for the rest of 2023.
Hogan said:
“While we have the Fed meeting, the consensus has never been clear that they are not going to do anything at this particular meeting, and it will be their back-to-back meetings in which rates will not be raised. I think that may signal that the cycle of raising rates is over, and I think it potentially helps stop the parabolic rise that we’ve seen in Treasury yields.
Early last week, the 10-year Treasury yield rose above the 5% mark, but on Monday it was hovering around 4.89%. Investors are eagerly anticipating the October jobs report on Friday as they look for signs of a possible labor market slowdown. A more comfortable labor market will likely make the Federal Reserve more comfortable maintaining its current interest rate levels for the remainder of the year.
Bhushan is a fintech enthusiast and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in a constant process of learning and keeps himself motivated by sharing his acquired knowledge. In his spare time he reads adventure fantasy novels and occasionally explores his culinary skills.
Bitcoin Crypto Related Post