Market Snapshot: Dow is on track to clinch best October ever as investors await Fed meeting

by | Oct 31, 2022 | Stock Market

The Dow Jones Industrial Average finished with its best October performance ever on Monday, despite falling along with the S&P 500 and Nasdaq Composite and pulling back from a two-month high, as traders looked toward the Federal Reserve’s midweek decision on interest rates.How stocks traded
The Dow Jones Industrial Average
DJIA,
-0.39%
finished down by 128.85 points, or 0.4%, at 32,732.95.

The S&P 500
SPX,
-0.75%
ended lower by 29.08 points, or 0.8%, at 3,871.98.

The Nasdaq Composite closed down by 114.31 points, or 1%, at 10,988.15.

October’s gain in the Dow industrials was 14%, surpassing the 10.65% threshold needed to secure the blue-chip gauge’s strongest October on record, according to Dow Jones Market Data. In addition, the Dow’s October showing produced the gauge’s largest monthly percentage gain since January 1976.

Stock Market Today: Live coverage of Monday’s market actionWhat drove markets Investors turned cautious ahead of the Federal Reserve’s monetary-policy meeting, which concludes on Wednesday, and sold off equities following the stock-market’s recent gains. Monday’s moves in the stock market amounted to a “mild profit-taking pullback and wait-and-see mode” by investors, said Art Hogan, the Boston-based chief market strategist at B. Riley Wealth. In particular, investors want to see whether Fed Chairman Jerome Powell concedes to expectations that the Fed might be looking to slow the pace of rate increases in December, or pushes back on that narrative with a more hawkish outlook which would “tip over the apple cart,” Hogan said via phone. Read: What Fed Chair Powell can say to keep the rally in stocks going — or kill it For now, fed-funds futures traders are pricing in a slightly higher chance of a 75-basis-point hike than a 50-basis-point move in December, after policy makers deliver a widely expected 75-basis-point hike on Wednesday. Investors are also looking ahead to Friday’s nonfarm payroll report for October, as well as next week’s midterm elections — …

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