Dow Opens 200 Points Higher As November Trading Kicks off, Fed Meeting Begins

Tiger Newspress2022-11-01

Stocks opened higher on Tuesday as a new month of trading commenced and Wall Street looked ahead to a key Federal Reserve decision on rates.

Futures tied to the Dow Jones Industrial Average were up 230 points, or 0.7%. S&P 500 and Nasdaq 100 futures added 1.1% and 1.4%, respectively.

The rise in stock futures came as rates fell ahead of the central bank’s rate decision as investors hope for a sign that the Fed will ease its tightening stance in the months ahead. A better-than-feared earnings season, meanwhile, continued with a strong report from Pfizer while Uber shares popped on a revenue beat and strong gross bookings.

Some traders also pointed to optimism from unconfirmed reports that China could be moving away from its Zero Covid policy as a source for Tuesday’s early gains.

“Stocks are trading very well following unconfirmed reports on social media overnight about China formulating a plan to exit its ‘zero tolerance’ approach to COVID,” wrote Adam Crisafulli of Vital Knowledge.

“While the consensus narrative has embraced the ‘Fed will slow its tightening pace’ narrative, China remains among the most hated markets on the planet w/its equity indices at multi-decade lows – there’s still a lot more room to rally on the upside in the coming quarters assuming a more realistic COVID approach is implemented,” he added.

Wall Street on Monday wrapped up a strong month of gains, with the Dow rallying nearly 14% for its biggest monthly advance since January 1976, as investors rotated out of technology and hedged hopes on stalwarts like banks. The S&P 500 and Nasdaq Composite added about 8% and 3.9%, respectively.

Tuesday also kicks off the Fed’s November meeting, which many expect will result in a 75 basis point interest rate hike. Investors will also monitor the central bank’s statement and Fed Chair Jerome Powell’s press conference for signs that the Fed may slow its tightening pace.

Economic releases for Tuesday include job openings data and construction spending for September. The ISM manufacturing report for October is also due.

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Comments

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    2022-11-02
    TSY123
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    2022-11-02
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  • robot1234
    2022-11-02
    robot1234
    Stocks finish lower as Wall Street braces for key Fed decision.  Stocks dipped on Tuesday as traders assessed better-than-expected economic data and prepared for another likely rate hike from the Federal Reserve. The Dow Jones Industrial Average fell 0.24%, to 32,653.20, while the S&P 500 slid 0.41% to 3,856.10. The Nasdaq Composite shed 0.89% to 10,890.85. All the major averages opened higher but turned negative after job openings in September showed a resilient labor market. The news heightened fears that the central bank may keep its aggressive stance as it fights to tame high inflation. “Any time you get good news, the market doesn’t like it because it just means that the Fed is probably going to be tightening more and potentially for longer,” said Randy Frederick, managing di
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    2022-11-02
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    2022-11-01
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    2022-11-01
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