The Dow Jones Industrial Average closed up more than 400 points on Monday (October 24), with the market continuing its gains from last week. After US business activity was reported to have slowed in October. This shows that an aggressive increase in interest rates by the Federal Reserve (Fed), which tries to slow the heat of the economy and curb inflation, has begun to pay off.
- The Dow Jones Industrial Average closed at 31,499.62 points, up 417.06 points or +1.34%,
- The S&P 500 index closed at 3,797.34 points, up 44.59 points, or +1.19%, and
- The Nasdaq index closed at 10,952.61, up 92.90, or +0.86%.
S&P Global revealed that the Purchasing Managers’ Index (PMI) combines the basic US manufacturing and service sectors. The PMI fell to 47.3 in October, a two-month low from 49.5 in September The PMI was under pressure due to a contraction in orders and new jobs. Business confidence plunged to the lowest level in more than two years.
The PMI remains below 50, indicating that US businesses are contracting. and this is the 4th month contraction in a row
Peter Tutz, analyst at Chase Investment said Consell in Virginia The data shows that the US economy is slowing down and that what the Fed is doing is starting to pay off, and the data also led to markets expect the Fed to slow its rate hike.
Nine of the 11 stocks in the S&P500 closed in positive territory, led by health care indexes, with Eli Lilly up 2.09 percent, Abbott Laboratories up 3.41 percent and United Hale.Equity was up 1.44%, shares of Johnson & Johnson up 1.40%.
Tesla shares fell 1.49 percent after the company announced a 9% drop in its Model 3 and Model Y cars sold in China, in a sign that demand in China, the world’s largest car market, is slowing.
Shares of Chinese companies listed on the New York Stock Exchange fell sharply. This includes Alibaba Holdings after China unveiled a new executive team on the Politburo Standing Committee, all of whom are close to President Xi Jinping and made it possible. Investors are worried that President Xi Jinping will use his power absolute to control China’s economy and business.
Investors are eyeing the results of major US technology companies this week. That includes Apple, Alphabet, Amazon, Microsoft and Meta Platforms, while a number of industrial companies are also due to release results this week, including United.Parcel Services (UPS), Boeing, Ford Motors, 3M, General Motors, Chevron and Exxon Mobil.
Investors are also keeping an eye out for key economic releases this week. On Thursday it will release its third quarter gross domestic product (GDP) and on Friday it will release the personal consumption expenditure price index (PCE) for September. which is a measure of inflation that the Fed cares about.
By InfoQuest News Agency (25 Oct 65)
Tags: dowjones , dow jones , stock market , New York stock market
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