October may be famous for the stock market crash that scares history like that in 1929, 1987 and 2008. But as of this month, there is nothing for investors to fear. and Wall Street. Stocks enjoyed another strong session Monday, continuing to heat up the market this month.
The Dow was up more than 475 points, or 1.6%, in afternoon trading. The Dow has gained nearly 10% this month, coming back from steep declines in August and September.
The blue chip industry, which includes Apple (AAPL), Microsoft (MSFT), Coca-Cola (KO), McDonald’s (MCD), Disney (DIS) and 25 other giants of the American economy , is still down about 13% this year. However.
But the market has rallied this month in anticipation that the Federal Reserve may soon retire from a series of powerful inflation-fighting measures. A larger rate hike is expected at the Fed’s next meeting on November 2 and in December. However, some are hopeful that the Fed may pause in 2023.
Strong earnings for the third quarter are helping to boost stocks as well.
The S&P 500 rose 1.3% Monday, and the Nasdaq rose about 0.7%, too. Both indexes also posted healthy 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, though, meaning they’re in a bear market.
The Nasdaq was in the green on Monday even as shares of several Chinese technology stocks traded in the United States fell on fears of a further China crackdown now that Xi Jinping has approved talks the third as the head 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 losses. So did the shares of Chinese techs Alibaba (BABA), Baidu (BIDU) and Tencent (TCEHY).
American companies with heavy exposure to the Chinese market also hit hard and sat in the broader market.
Tesla ( TSLA ) fell 2%. Starbucks ( SBUX ) was down 6%. Fast food giant Yum! Brands ( YUM ) was down 2% while Yum China ( YUMC ), which makes the KFC, Pizza Hut and Taco Bell brands in China, was down 14%.
Casino owners Wynn Resorts ( WYNN ) and Las Vegas Sands ( LVS ), both of which have properties in China’s special administrative zone of Macao, also collapsed.