Stock market continues to sizzle this month

New York
CNN Business

October may be famous for historically horrific stock market crashes such as 1929, 1987 and 2008. But so far this month on Wall Street, investors have nothing to fear. Stocks posted another solid rally on Monday, continuing a hot streak in markets this month.

The Dow was up more than 475 points, or 1.6%, in late afternoon trading. The Dow is up nearly 10% this month, rebounding from sharp drops in August and September.

Blue-chip industrial companies, including Apple ( AAPL ), Microsoft ( MSFT ), Coca-Cola ( KO ), McDonald’s ( MCD ), Disney ( DIS ), and 25 other giants of America’s economy, are still down about 13% this year. however.

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But the market has rallied this month on hopes that the Federal Reserve may soon take a break from a series of 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. However, some hope that the Fed could stop in 2023.

The largely solid third-quarter earnings also help boost stocks.

The S&P 500 rose 1.3% on Monday, and the Nasdaq also gained about 0.7%. Both indexes also have decent gains in 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 several top Chinese technology stocks falling in US trading on fears of a crackdown by China now that Xi Jinping has secured a third term as the country’s leader.

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 China’s leading technology companies 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 pulled 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 ), both of which have properties in China’s Macau Special Administrative Region, also fell.


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