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Investors sent all leading US stock market indices up significantly on Monday, believing that the interest rate peak has been reached for this time.
Tuesday opened with a broad decline, which was mostly brought back in during the afternoon, and later in the evening the mood eased. This is how the exchange day ended:
The Tek index Nasdaq up 0.48 percent. Industry-heavy Dow Jones rose by 0.38 percent. The broad S&P index ended up 0.65 percent.
Despite the rise, all three leading US stock market indices are down in October. The Dow Jones fell by 1.4, the Nasdaq fell by 2.8 percent and the S&P 500 ended down 2.2 percent. This is the third month in a row of stock market falls in the US.
October 2023 is the worst October on Wall Street since 2020.
Waiting for Apple
Results season continues this week. So far, over 70 per cent of the companies on the S&P index have submitted a quarterly report, and the figures have so far been better than expected, according to LSEG data, writes TDN Direkt. Nevertheless, the index is headed for its third consecutive month of decline.
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This week there is the greatest excitement related to the quarterly report from Apple, not least what the company has to say about future developments.
Before the stock market opening, the image sharing service Pinteret presented better results than expected, and writes in its report that the digital advertising market is stabilizing. At the stock market opening, the share rises 13 per cent.
The machine and equipment manufacturer Caterpillar, on the other hand, falls six percent after delivering a worse than expected result. The company reported adjusted earnings of $5.52 per share in the third quarter. In advance, an adjusted profit of USD 4.79 per share was expected.
Interest rate peak?
On Wednesday, there will be a new interest rate announcement from the American central bank. It joins the ranks of several central banks presenting their interest rate decisions this week.
The market expects the key interest rate to be kept calm, in the range of 5.25-5.5 per cent. Investors believe that the interest rate peak has all been reached, but have their eyes fixed on central bank governor Jerome Powell and what he has to say after the interest rate announcement about inflation and the interest rate path ahead.
In recent months, Powell and the Fed have seen government interest rates skyrocket as the market has seemed to accept what is likely to be the reality: Policy interest rates will remain high, for a long time. The ten-year yield has risen by around one hundred basis points since the summer, and passed early last week five per cent for the first time since 2007. Before the weekend it had fallen back to around 4.84 per cent.
On Friday, investors will be served fresh employment figures, the so-called nonfarm payrolls will be presented at 2.30 pm Norwegian time. It is expected that 190,000 new jobs will have been created in October, compared to 360,000 in September. (Terms) Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links, which lead directly to our pages. Copying or other forms of use of all or part of the content may only take place with written permission or as permitted by law. For further terms see here.
This is America’s new speaker
Republican Mike Johnson has been elected leader of the House of Representatives.
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Published: 25.10.23 — 08:38
2023-10-31 21:33:45
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