Stocks slipped on Monday, however the Dow capped off its best month since 1976 and all the foremost averages snapped a two-month losing streak.
The Dow Jones Industrial Average fell 128.85 points, or 0.39%, to settle at 32,732.95. The S&P 500 shed 0.75% to complete at 3,871.98, while the Nasdaq Composite tumbled 1.03% to 10,988.15.
Markets made an enormous comeback in October. The Dow guided those gains, soaring 13.95% for the month. The 30-stock finished its best month since 1976 as investors bet on more traditional firms, like banks, to guide the following bull. The S&P 500 and Nasdaq Composite gained 8% and three.9, respectively, for October.
“Stocks are taking a breather after the massive run last week,” said Ryan Detrick, chief market strategist on the Carson Group. “Then, considering the at all times essential Fed meeting and rate of interest decision on Wednesday, a pause makes much more sense. “
October’s gains have come despite a mixed third-quarter earnings season, which has shown slowing growth and major disappointments from large tech firms akin to Meta Platforms and Amazon. Those names led Monday’s tech losses as investors drifted out of the expansion sector.
Traders are preparing this week for the newest Federal Reserve meeting starting Tuesday. The central bank is widely expected to hike rates of interest by 75 basis points on Wednesday. Many on Wall Street are on the lookout for a signal from the Federal Open Market Committee’s statement or Chairman Jerome Powell’s press conference that the Fed could pause its hikes or reduce their size within the near future.
“Wednesday’s message might be crucial for market expectations going forward,” said LPL Financial’s Quincy Krosby. “With the query and answer segment for the presser, Chairman Powell may have to finesse his answers as if he were walking a monetary tightrope.”
Earnings season continues this week with reports from Uber, Pfizer and Advanced Micro Devices. Investors are also looking forward to October jobs data due out Friday.
