#StockMarket #EconomicReport #MarketVolatility
Stock Market Insights: Navigating October's Volatility
As we enter October, the stock market is riding a four-week winning streak, but the early days of the month have been marked by a sluggish start. Here are the key points to consider:
Market Performance
Despite the slow start, the major indices managed to achieve slight increases last week. The S&P 500 saw a weekly gain of 0.22%, the Nasdaq Composite edged up by 0.10%, and the Dow experienced a boost of 0.09%. This marks the fourth consecutive week of gains for all three indices.
Jobs Report and Economic Confidence
The recent jobs report, released on Friday, was better than anticipated, bolstering confidence that the Federal Reserve might successfully navigate a 'soft landing' for the U.S. economy. This positive jobs data pushed the Dow to an all-time high.
Future Outlook and Risks
Keith Lerner, co-chief investment officer at Truist Wealth, emphasized two crucial pillars for the current equity market: "Don't fight the trend and don't fight the Federal Reserve." However, he also warned about potential increased market volatility due to the upcoming U.S. presidential election and the possibility of an 'October surprise.'
Global Developments and Economic Calendar
Investors are keeping a close eye on global developments, particularly the ongoing tensions in the Middle East, which have led to increased oil prices and a rise in the CBOE volatility index. This week, significant economic reports include the Federal meeting minutes on Wednesday and the consumer price index report on Thursday.
Earnings Season
Earnings season is set to pick up pace, with notable companies like Delta Air Lines and JPMorgan Chase scheduled to announce their results on Thursday and Friday, respectively. These earnings reports will be closely watched for any signs of economic strength or weakness.
Market Sentiment
On Sunday evening, stock futures remained stable, with S&P 500 futures increasing by a fraction of 0.1%, Nasdaq 100 futures showing no change, and Dow Jones Industrial Average futures rising by 23 points, less than 0.1%. This stability follows a tumultuous week for equities, where the major indices recovered slightly from Tuesday's significant declines.
In conclusion, while the stock market has shown resilience with four consecutive weeks of gains, investors must remain vigilant about potential volatility driven by global events and upcoming economic reports.
Original Article: https://www.cnbc.com/2024/10/06/stock-market-news-today.html
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