Stocks rally to start October and a new quarter with Dow up over 600 points

Stocks rally to start October and a new quarter with Dow up over 600 points
Advertisement

Stocks rallied Monday to start the new month and quarter, as Treasury yields eased from levels not seen roughly a decade.

The Dow Jones Industrial Average jumped 681 points higher, or 2.3%. At one point it advanced as much as about 700 points. The S&P 500 rose 2.1%, after falling Friday to its lowest level since November 2020, and the Nasdaq Composite gained 1.6%.

Those moves came as the yield on the 10-year U.S. Treasury note rolled over to trade at around 3.7%, after topping 4% at one point last week.

“It’s pretty simple at this point, 10-year Treasury yield goes up, and equities likely remain under pressure,” Raymond James’ Tavis McCourt said. “It comes down, and equities rally.”

Wall Street is coming off a tough month, with the Dow and S&P 500 notching their biggest monthly losses since March 2020. The Dow on Friday also closed below 29,000 for the first time since November 2020.

The Dow shed 8.8% in September, while the S&P 500 and Nasdaq Composite lost 9.3% and 10.5%, respectively.

For the quarter, the Dow fell 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015. Both the S&P and Nasdaq Composite fell 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.

As the new quarter kicks off, all S&P 500 sectors sit at least 10% off their 52-week highs. Nine sectors finished the quarter in negative territory.

In the fourth quarter, elevated inflation and a Federal Reserve intent on bringing surging prices to a halt regardless of what it means for the economy will likely continue to weigh on markets, said Truist’s Keith Lerner. Oversold conditions, however, also make the market vulnerable to a sharp short-term bounce on good news, he added.

“I think we could be set up for some type of reprieve but the underlying trend at this point is still a downward trend and choppy waters to continue,” Lerner said.

Share your story or advertise with us: Whatsapp: +2347068606071 Email: info@newspotng.com


--Recommended Articles--