Stocks closed lower on Wall Street, but the major indices still posted big gains in October, including the best month since 1976 for the Dow Jones Industrial Average. July as well as the Nasdaq Composite. The S&P 500 fell 0.7% on Monday, with the Dow down his 0.4%. The Nasdaq fell 1%. Investors are eyeing another jumbo rate rise this week from the Federal Reserve and the government’s monthly report on the job market. Starbucks is he one of the companies to report earnings this week.
This is breaking news. Here’s AP’s previous story:
Stocks were broadly down on Wall Street in Monday afternoon trading, a slight pullback in the major indices that have marked the market for October.
The S&P 500 fell 0.6% at 3pm ET. The benchmark index is on a monthly pace of 8.1%, its first gain since July following two consecutive monthly declines.
The Dow Jones Industrial Average fell 96 points (0.3%) to 32,765, but is on track for its biggest monthly gain since at least 1975.
The Nasdaq is down 1%, heading for its first monthly gain since July.
Technology and telecoms stocks were the biggest drag on the broad market on Monday. Apple dropped his 1.6% and Google’s parent company dropped his 2%.
Stocks rose throughout October as investors shifted their focus to the latest corporate earnings round. More than half of the companies in the S&P 500 report results, according to FactSet, with overall revenue growth of 2.3% for him.
As Wall Street tries to get a complete picture of the economy, companies have provided investors with a range of outcomes and projections. Inflation is still blazingly hot, and the Federal Reserve is aggressively raising interest rates to slow the economy and keep prices high. This strategy puts an excessive brake on economic growth and risks pushing the economy into recession.
Bond yields are hovering near multi-year highs as the Federal Reserve (Fed) continues to raise interest rates. The two-year Treasury yield, which tends to track expectations of Federal Reserve action, rose to 4.48% from 4.42% at the end of Friday.
The 10-year yield, which affects mortgage rates and many other loans, rose from 4.02% to 4.07% late Friday.
Investors are eyeing another big rate hike by the Federal Reserve this week. He is expected to see a three-fold increase in price next week. Wall Street is broadly divided on whether to do the same in December or shift to a smaller increase, according to CME Group.
“Markets are eagerly awaiting the peak of this year’s aggressive rate-hiking cycle, but it would be a mistake to expect central banks to quickly end their fight against inflation,” analysts at JPMorgan wrote in a research note. did.
Inflation is a global problem, and Eurostat, the European Union’s statistical agency, reported on Monday that inflation hit a new record in 19 countries that use the euro currency. Ukraine. According to Eurostat, annual inflation he reached 10.7% in October.
Investors will be watching the US government’s latest monthly jobs report on Friday for clues as to whether the hot job market is cooling as inflation weighs on businesses. Wall Street still has plenty of earnings to review from big business this week. Pfizer will report results on Tuesday and CVS on Wednesday. Starbucks will report its results on Thursday.
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Joe McDonald and Matt Ott contributed to this report.
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