Stock market continues to sizzle this month


New York
CNN business

October may be famous for the historically horrific crashes of the stock market such as those in 1929, 1987 and 2008. But so far this month, there is nothing for investors to fear from Wall Street. 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 declines in August and September.

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

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But the market rallied this month on hopes 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 as well as in December. Still, some hope the Fed could stop in 2023.

Most of the solid earnings for the third quarter are helping to boost stocks as well.

The LS&P 500 rose 1.3% Monday, and the Nasdaq rose about 0.7%, as well. Both indexes are also showing decent 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, which means they are in a bear market.

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The Nasdaq was in the green Monday despite the fact that shares of several major Chinese technology stocks that are trading in the United States were falling due to the fear of continued crackdowns from China now that Xi Jinping consolidated his third term as 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 did shares of top Chinese tech giants Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY).

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US companies with significant exposure to the Chinese market were also hit hard and stayed out of the 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 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 the Chinese special administrative region of Macau, also fell.

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