The stock market is known to experience significant declines in October through the years, including 1929, 1987, and 2008.
However, the stock market in 2022 managed to avoid similar problems.
Wall Street investors have nothing to fear as the month closes.
The market continued its October hot streak on Monday and enjoyed another strong rally.
Stocks
The Dow closed over 420 points (1.3%) on Monday.
Additionally, the Dow Jones gained almost 10% in October, recovering from the sharp falls in August and September.
Blue chip industrials and other giants of the US economy are still down 13% in 2022, including:
- Apple (AAPL)
- Microsoft (MSFT)
- Coca-Cola (KO)
- McDonald’s (MCD)
- Disney (DIS)
Read also: The stock market gets a good start in October as the market rallies
Federal Reserve
The market rebounded this month, hoping the Federal Reserve would break its aggressive rate hikes to curb inflation.
Strong rate hikes are expected at the next Fed meetings on November 2 and December.
However, some people hope the Fed can pause the hikes next year.
Solid third-quarter earnings are also helping to strengthen stocks.
The bear market
The S&P 500 was up 1.2% on Monday, while the Nasdaq gained 0.9%.
The two indices show decent gains for October as well.
The Nasdaq is up by more than 3.5%, while the S&P 500 is up by nearly 6%.
The S&P 500 and Nasdaq are still down more than 20% each this year, which means they are in a bear market.
The Nasdaq was in the green on Monday, putting it in a favorable position.
Read also: Stock market settles into a steady pace after the worst day in US stocks
The Chinese market and other stocks
Several top Chinese tech stocks traded in the United States fell because of fears of a crackdown in China.
The crackdown comes from news that Xi Jinping will serve a third term as China’s leader.
Meanwhile, the e-commerce company Pinduoduo (PDD) lost more than 25%.
Electric car makers and significant Chinese tech stocks posted double-digit percentage losses, including:
- Nio (NIO)
- Xpev
- Li Auto
- Alibaba (BABA)
- Baidu (BIDU)
- Tencent (TCEHY)
Tesla shares fell 1.5%, while Starbucks fell 5.5%.
The fast food giant Yum! Brands (YUM) is down 2%, while Yum China (YUMC) fell 14%.
Yum China distributes several food brands in China, such as:
- KFC
- Pizza Hut
- Taco Bell
Casino owners with properties in Macau, Wynn Resorts and (WYNN) and Las Vegas Sands (LVS) also fell.
Image source: Market Watch
Reference:
