Stock market continues to sizzle this month

New York
CNN Business

October may be known for historically horrific stock market crashes like those in 1929, 1987 and 2008. But so far this month, there’s nothing for investors to fear on 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 is now up nearly 10% this month, recovering from sharp declines in August and September.

The blue-chip industrial, which includes Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), McDonald’s (MCD), Disney (DIS) and 25 other giants of the US economy, is still down about 13% this year. well.

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But the market has rallied this month on hopes that the Federal Reserve may soon take a break from its series of aggressive interest 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 pause in 2023.

Mostly solid earnings for the third quarter also help support stocks.

The S&P 500 rose 1.3% on Monday, and the Nasdaq also rose about 0.7%. 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, meaning they are in a bear market.

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The Nasdaq was in the green on Monday despite shares of several top Chinese tech stocks trading in the United States falling on fears of a continued crackdown by China now that Xi Jinping is set for 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 top Chinese tech Alibaba ( BABA ), Baidu ( BIDU ) and Tencent ( TCEHY ).

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US companies with significant exposure to the Chinese market were also hit hard, halting 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 Macao, also tumbled.


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