Market Surge: Dow Jones Soars 259 Points, Nasdaq Reaches Unprecedented Heights

HoonSmart.com >> Dow Jones plunged 259 points. Market still uncertain about Fed interest rate policy. The yield on 10-year government bonds rose to around 4.23%, near a three-month high, while the Nasdaq rose to a new high. of big tech stocks rise European stock markets fell on weak results from auto-related companies. Increase in crude oil prices

The Dow Jones Industrial Average (DJIA) closed on October 25 at 42,114.40 points, down 259.96 points or -0.61%, but the Nasdaq index closed at an all-time high due to gains in major technology stocks. Meanwhile, bond yields rose. from the uncertainty of the US Federal Reserve’s (Fed) monetary policy decision, which offset the strong performance.

The S&P 500 index closed at 5,808.12 points, down 1.74 points, -0.03%.
The Nasdaq index closed at 18,518.61 points, up 103.12 points, +0.56%.

In this week the Dow lost 2.68%, the S&P 500 lost 0.96%, but the Nasdaq added 0.16%.

Tech stocks supported the market ahead of the earnings report, with Nvidia up 0.8%, and Meta Platforms, Amazon and Microsoft also all higher.

Tesla’s better than expected performance the previous day has investors watching the performance of five other Magnificent Seven companies next week, including Alphabet, Meta, Microsoft, Apple and Amazon shares rose 3.36%.

Elsewhere, HCA Healthcare fell nearly 9% after reporting the hurricane hit its earnings and full-year forecast, while Colgate-Palmolive shares fell 4% after the company cut sales to a record low of the full year forecast

The market is still not sure. About the Fed’s interest rate policy The yield on the 10-year government bond rose to around 4.23%, close to a three-month high of above 4.25% hit midweek.

Phillip Colmar, managing partner and global strategist at MRB Partners, said the key factor at the moment is bond yields. This creates a lot of uncertainty. And investors do some analysis.

In addition, investors are analyzing new economic data ahead of next week’s employment report.

The US Commerce Department reports that in September, US orders for durable goods, such as aircraft, cars and heavy machinery with a useful life of three years or more, fell 0.8%, less than the 1.1% drop that analysts had expected. expect it. Total orders for basic durable goods Does not include aircraft. and weapons products and showed that the business sector’s spending plan increased by 0.5%, which is higher than the 0.1% that analysts were expecting.

Scott Wren, senior global market strategist at Wells Fargo Investment Institute, sees interest rates rising in the bond market over the past six weeks. It reflects investors adjusting to recent data showing the economy is stronger than expected. And the rise in government bond yields may not be driven by bets on who will win the US presidential election. to come

Meanwhile a survey by the University of Michigan released on Friday showed that consumer confidence increased this month. Republican confidence has grown amid the close election between Donald Trump and Kamala Harris.

The University of Michigan reports that the US Consumer Confidence Index rose to 70.5 in October. That was the highest level since April and higher than the 68.9 analysts expected from 70.1 in September.
Next week, investors await economic updates. Both’s personal consumption expenditure in September This is the measure of inflation that the Fed is worried about. Including hiring in October and the presidential election the following week.

European markets closed lower as weak results from auto-related companies such as Mercedes-Benz and Valeo and appliance maker Electrolux weighed on investor sentiment.

The pan-European STOXX 600 index closed lower for the second consecutive day and fell for the first time in three weeks. Real estate stocks fell the most this week.

Auto stocks fell, with Mercedes-Benz shares falling. The German automaker fell 1% after its main auto division’s third-quarter profit fell short of forecasts.

Valeo shares fell 9.5% as they cut their full-year sales forecast for the second time this year.
Electrolux shares fell 14.6% after third-quarter results missed expectations due to continued losses in the US. and more competition from China

Survey reveals that German business confidence improved more than expected in October. As a result, there is hope that there will be some easing of policy at the end of the year. Meanwhile, investors await next week’s third-quarter gross domestic product data.
Shares in French drugmaker Sanofi rose 2.5% after reporting third-quarter profit growth. Stronger than analysts expected

The STOXX 600 Index closed at 518.81 points, down 0.17 points or -0.03%.
The London Stock Exchange FTSE 100 Index closed at 8,248.84 points, down 20.54 points or -0.25%.
France’s CAC-40 stock market index closed at 7,497.54 points, down 5.74 points or -0.08%.
The DAX index of the German stock market closed at 19,463.59 points, up 20.59 points or +0.11%.

The price of WTI crude oil for December delivery rose $1.59 or 2.27% to close at $71.78 a barrel. And the price of Brent North Sea crude oil for December delivery increased by 1.67 dollars or 2.25% to close at 76.05 dollars per barrel.

——————————————————————————————————————————————————