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U.S. stocks ended lower on Monday but the Dow managed to record its best October performance ever, while the S&P 500 and Nasdaq also closed out a strong month of gains. All three major indexes ended in negative territory as investors once again looked concerned ahead of the Fed’s two-day policy meeting.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.4% or 128.85 points to end at 32,732.95 points, ending its six-day winning streak.
The S&P 500 fell 0.8% or 29.08 points to close at 3,871.98 points. Tech and communication services stocks were the biggest losers.
The Communication Services Select Sector SPDR (XLC) fell 1.7%, while the Technology Select Sector SPDR (XLK) declined 1.3%. The Energy Select Sector SPDR (XLE) gained 0.8%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq shed 1% or 114.31 points to finish at 10,988.15 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.55% to 25.88. Decliners outnumbered advancers on the NYSE by a 1.29-to-1 ratio. On Nasdaq, a 1.12-to-1 ratio favored declining issues. A total of 11.53 billion shares were traded on Monday, higher than the last 20-session average of 11.52 billion.
Investors Concerned Ahead of Fed’s Meeting
Markets made a solid comeback in October, led by Dow, which recorded its best October performance ever. The S&P 500 and Nasdaq also ended the month higher. However, last week’s rally came to a halt on Monday, with all three major indexes closing in the red as investors became cautious ahead of the Fed’s two-day policy meeting scheduled to begin on Wednesday.
The Fed is once again expected to hike interest rates by 75 basis points but investors are hopeful that the central bank might go slow on hiking rates after that. Investors are now waiting for Fed Chair Jerome Powell’s statement following the meeting and would closely be watching if he signals smaller size of rate hikes or pauses its hikes in the coming months.
Economic data released last week hinted at easing inflation, which has made traders optimistic. This saw stocks rallying as many expect that November’s rate hike could be the last of big hikes by the Fed.
Investors are also eagerly waiting for next week’s midterm elections and the fresh non-farm payroll figures, which could play an important role in moving markets.
The third-quarter earnings have been mixed so far but optimism around easing inflation has been helping stocks. On Monday, tech stocks took a beating once again. Disappointing results and outlooks from big tech companies like Microsoft Corporation (MSFT - Free Report) and Meta Platforms, Inc. (META - Free Report) last week have been taking a toll on the broader market.
It was one of the best months for all three major indexes this year. Dow particularly was in focus, as it made a solid rebound this month to record its best October performance ever and its best month since 1976.
The blue-chip index closed the month 14% higher as investors dumped tech stocks and bet on traditional companies like banks and industrial stocks. The S&P 500 and Nasdaq also recorded solid gains for the month, ending 8% and 3.9% higher, respectively.
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Stock Market News for Nov 1, 2022
U.S. stocks ended lower on Monday but the Dow managed to record its best October performance ever, while the S&P 500 and Nasdaq also closed out a strong month of gains. All three major indexes ended in negative territory as investors once again looked concerned ahead of the Fed’s two-day policy meeting.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) declined 0.4% or 128.85 points to end at 32,732.95 points, ending its six-day winning streak.
The S&P 500 fell 0.8% or 29.08 points to close at 3,871.98 points. Tech and communication services stocks were the biggest losers.
The Communication Services Select Sector SPDR (XLC) fell 1.7%, while the Technology Select Sector SPDR (XLK) declined 1.3%. The Energy Select Sector SPDR (XLE) gained 0.8%. Ten of the 11 sectors of the benchmark index ended in negative territory.
The tech-heavy Nasdaq shed 1% or 114.31 points to finish at 10,988.15 points.
The fear-gauge CBOE Volatility Index (VIX) was up 0.55% to 25.88. Decliners outnumbered advancers on the NYSE by a 1.29-to-1 ratio. On Nasdaq, a 1.12-to-1 ratio favored declining issues. A total of 11.53 billion shares were traded on Monday, higher than the last 20-session average of 11.52 billion.
Investors Concerned Ahead of Fed’s Meeting
Markets made a solid comeback in October, led by Dow, which recorded its best October performance ever. The S&P 500 and Nasdaq also ended the month higher. However, last week’s rally came to a halt on Monday, with all three major indexes closing in the red as investors became cautious ahead of the Fed’s two-day policy meeting scheduled to begin on Wednesday.
The Fed is once again expected to hike interest rates by 75 basis points but investors are hopeful that the central bank might go slow on hiking rates after that. Investors are now waiting for Fed Chair Jerome Powell’s statement following the meeting and would closely be watching if he signals smaller size of rate hikes or pauses its hikes in the coming months.
Economic data released last week hinted at easing inflation, which has made traders optimistic. This saw stocks rallying as many expect that November’s rate hike could be the last of big hikes by the Fed.
Investors are also eagerly waiting for next week’s midterm elections and the fresh non-farm payroll figures, which could play an important role in moving markets.
The third-quarter earnings have been mixed so far but optimism around easing inflation has been helping stocks. On Monday, tech stocks took a beating once again. Disappointing results and outlooks from big tech companies like Microsoft Corporation (MSFT - Free Report) and Meta Platforms, Inc. (META - Free Report) last week have been taking a toll on the broader market.
Shares of Microsoft declined 1.6%, while Meta Platforms plummeted 6.1%. Meta Platforms has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
No major economic data was released on Monday.
Monthly Roundup
It was one of the best months for all three major indexes this year. Dow particularly was in focus, as it made a solid rebound this month to record its best October performance ever and its best month since 1976.
The blue-chip index closed the month 14% higher as investors dumped tech stocks and bet on traditional companies like banks and industrial stocks. The S&P 500 and Nasdaq also recorded solid gains for the month, ending 8% and 3.9% higher, respectively.