Market Snapshot: Dow trims record October surge as traders eye looming Fed meeting

by | Oct 31, 2022 | Stock Market

The Dow Jones Industrial Average and S&P 500 pulled back from their highest levels in at least six weeks on Monday as traders looked ahead to the Federal Reserve’s midweek decision on interest rates.How stocks are trading
The Dow Jones Industrial Average
fell 92 points, or 0.3%, to 32,770.

The S&P 500
was down 23 points, or 0.6%, at 3,878.

The Nasdaq Composite
dropped 94 points, or 0.9%, to 11,008.

On Friday, the Dow ended at a two-month high and logged a weekly gain of more than 5%. The blue-chip gauge’s October gain was 14.4% through Friday, and it will log its strongest October on record if it maintains a monthly gain of more than 10.65% through Monday’s close, according to Dow Jones Market Data.

Stock Market Today: Live coverage of Monday’s market actionWhat’s driving 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. 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 the Fed delivers 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 — each of which could be market-moving events, Hogan said.The S&P 500 gained 4% last week, even though observers said there were plenty of reasons for stocks to sell off hard — including a hot PCE inflation report for September and China’s renewed Covid-19 lockdowns. Disappointing announcements from market stalwarts like Alphabet

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