Coinspeaker
Dow Jones Rallies 500 Points while Bitcoin Remains Flattish
On Monday, October 30, the Dow Jones Industrial Average (INDEXDJX: .DJI) gained by over 511 points or 1.58%, ending the trading at 32,928.96. This was the biggest single-day gain market by the index, after June 2023.
The S&P 500 saw a robust 1.2% surge, reaching 4,166.82, marking its most substantial gain since late August. Simultaneously, the Nasdaq Composite also advanced, rising by 1.16% to 12,789.48. This week is big for traders with major announcements ahead such as jobs report, Federal Reserve rate decision, and Apple Inc‘s (NASDAQ: AAPL) earnings.
The Communication services sector led the way in S&P 500 (INDEXSP: .INX) performance, surging by over 2% in its most substantial daily gain since late August. Mega-cap tech giants Amazon.com Inc (NASDAQ: AMZN) and Meta Platforms (NASDAQ: META) followed suit, with impressive jumps of 3.9% and 2%, respectively.
These developments follow the S&P 500’s recent dip into correction territory last week. During the week, the broader index experienced a 2.5% decline, pushing it more than 10% below its closing high for 2023. Moreover, it has sustained a 2.8% drop in October, signaling its third consecutive month in the red, which hasn’t occurred since the pandemic’s outbreak in 2020. Speaking to CNBC, Art Hogan, chief market strategist at B. Riley Financial said:
“We closed on the lows last week. Oftentimes when you get that kind of negativity going into a weekend and nothing new arises that changes the outlook for markets and the economy, you get a bit of a claw back on Monday.”
“Investors are finally feeling a little bit more confident that perhaps we priced in enough bad news and that’s really manifesting in a stronger market today,” he added.
All Eyes on the Fed Decision
The Federal Reserve’s upcoming decision on Wednesday is highly anticipated, and it’s widely expected that the central bank will maintain its current benchmark interest rate. Given that the recent stock market correction has been primarily driven by rising interest rates, investors are eager for any signals from the Fed that it may conclude its rate hikes. Many traders anticipate that the Fed will refrain from further rate increases for the remainder of 2023.
Hogan said:
“Whilst we have a Fed meeting, the consensus has never been clearer that they’re not going to do anything at this particular meeting, and that’ll be back-to-back meetings of them not raising rates. I think that may signal that the cycle of raising rates is over, and I think that that likely helps to sort of stop that parabolic rise we’ve seen in Treasury yields.”
At the beginning of last week, the 10-year Treasury yield surged above the 5% mark, but it was hovering around 4.89% on Monday. The upcoming October jobs report, scheduled for Friday, is eagerly awaited by investors, as they are looking for signs of a potential labor market slowdown. A more relaxed labor market would likely make the Federal Reserve more comfortable with maintaining its current interest rate levels for the remainder of the year.next
Dow Jones Rallies 500 Points while Bitcoin Remains Flattish