October’s Stock Market Assessment Is in
Stocks are climbing this week and performed well throughout October, setting up for a bullish November.
Quick overview
- All major stock market indices rose in October, with the S&P 500 up 2.3%, Nasdaq gaining 4.7%, and Dow Jones climbing 2.5%.
- October saw steady gains despite typical volatility, setting the stage for a potentially strong November.
- 80% of S&P 500 companies reporting earnings have exceeded Wall Street expectations, indicating a bullish market outlook.
- The Federal Reserve's recent rate cut suggests confidence in the economy, with indices remaining near all-time highs.
The stock market indices all rose for October, with the S&P 500 adding 2.3%, the Nasdaq gaining $4.7%, and the Dow Jones climbing by 2.5% for the month.
October is often a month of increased volatility for the stock market, but this year it proved to be a month of steady gains. All three indices set new records, and now they are prepared for a profitable November. Typically, the month of November is the strongest month of the year for the stock market.
In November, the S&P 500 rises, on average, 1.8%, but we may see even better gains this month as the market goes through an extraordinarily bullish period. An early indicator is that 80% of S&P 500 companies that announced their quarterly gains have managed to beat the Wall Street predictions.
Big Earnings Week Could Start November Strong
This week is another major one for investors as more than 100 companies will release their quarterly earnings. These include AMD, McDonalds Uber, and more. Already for this quarter, more than 300 companies on the S&P 500 have released earnings, and with so many of those beating market expectations, November is already shaping up to be a stellar month or the stock market.
The worry that the markets cannot simply keep going higher seems to be a baseless one. The stock market indices simply keep setting records, and the Federal Reserve does not seem overly worried since they just approved a new rate cut. If they saw indication of a bubble about to burst, they would likely not issue that rate cut, and investors may have little to worry about for now, especially if they are investing on the stocks that have performed well so far this year.
The S&P 500 is currently up 0.30%. The Nasdaq is also up for the day, gaining 0.76%. The Dow Jones is down 0.41% for Monday so far, but that is no great loss. That index is still right near its all-time high, as are the other two top indices. It would take a lot right now to bring the stock market down from these highs, and so far, all indications point to a strong economy through the end of the year.
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