CNBC – UPDATED TUE, OCT 31 20234:29 PM EDT
Stocks rose Tuesday, regaining some ground at the end of a dismal month that was defined by surging interest rates.
The S&P 500 climbed 0.65% to 4,193.80, while the Nasdaq Composite added 0.48% to 12,851.24. The Dow Jones Industrial Average advanced 123.91 points, or 0.38%, to 33,052.87.
Real estate and financials outperformed in the S&P 500, with the sectors higher by 2% and 1.1%, respectively. Notably, however, some mega-cap tech stocks lagged. Alphabet and Meta Platforms shares were lower. Nvidia declined by nearly 1%.
The Cboe Volatility Index (VIX) dropped to an 18 handle, below the fear gauge’s long-term average of roughly 20. A higher VIX level can point to greater uncertainty in markets.
Earnings season continued Tuesday. Caterpillar slid more than 6% after the construction equipment maker said its fourth-quarter revenue would only be “slightly” higher than the year-ago period. JetBlue shares dropped more than 10% after the airline’s third-quarter results missed expectations on the top and bottom lines.
Stocks posted their third-straight losing month. The Dow and the S&P 500 fell 1.4% and 2.2%, respectively. This marks the first three-month losing streak for both indexes since March 2020. The tech-heavy Nasdaq declined 2.8% in October, also notching its third consecutive negative month.
October’s losses come amid a rapid rise in Treasury yields. This month, the benchmark 10-year U.S. Treasury yield breached the key 5% level for the first time since 2007. Market participants attribute the rise to several factors, including concern the Federal Reserve will keep interest rates higher for longer.
The Fed is set to release its next decision on interest rates on Wednesday. Fed funds futures pricing suggests a more than 99% probability that the central bank will keep rates at current levels, according to the CME FedWatch Tool.
“If the Fed comes out and says they’re probably done for the year, gives hints that they’re feeling more dovish, that could be one thing that really helps,” said Ross Mayfield, investment strategy analyst at Baird. “But I do think you need some downward pressure on rates to actually get a more sustainable move in stocks.”
Historically speaking, November is a strong month for markets, and traders are hoping seasonal tailwinds will be supportive of a year-end rally. However, they expect a peak in bond yields will be needed before they see some relief in the equity market.
Source: https://www.cnbc.com/2023/10/30/stock-market-today-live-updates.html
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