Stock market continues to sizzle this month

New York
CNN Business

October may be famous for historically scary stock market crashes like those of 1929, 1987 and 2008. But so far this month, investors on Wall Street have nothing to fear. Stocks enjoyed another solid rally on Monday, continuing a hot streak for the market this month.

The Dow was up more than 475 points, or 1.6%, in afternoon trading. The Dow is now up nearly 10% this month, rebounding from sharp drops in August and September.

Apple ( AAPL ), Microsoft ( MSFT ), Coca-Cola ( KO ), McDonald’s ( MCD ), Disney ( DIS ) and 25 other giants in the U.S. economy are still down 13 percent this year. However.

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But markets have rallied this month on hopes that the Federal Reserve may soon take a break from a series of aggressive rate hikes to fight inflation. More big rate hikes are expected at the Fed’s next meeting on November 2 and December. Still, some expect the Fed to pause in 2023.

Mostly solid earnings for the third quarter are also helping to boost stocks.

The S&P 500 rose 1.3% on Monday, and the Nasdaq was also up about 0.7%. Both indexes are also sporting decent gains for October, with the Nasdaq up more than 3% and the S&P up 6%. The S&P and Nasdaq are still down more than 20% in 2022, though, which means they’re in a bear market.

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The Nasdaq was in the green on Monday despite the fact that shares of many of the top Chinese tech stocks traded in the United States were sinking on fears of an ongoing crackdown by China as Xi Jinping cemented a third term as the nation’s leader.

E-commerce company Pinduoduo (PDD) plunged more than 25%. Electric car companies Nio (NIO), Xpev and Li Auto all posted double-digit percentage losses. So did shares of top Chinese tech giants Alibaba ( BABA ), Baidu ( BIDU ) and Tencent ( TCEHY ).

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US companies with significant exposure to the Chinese market were also hit hard and sat out the broader market rally.

Tesla ( TSLA ) fell 2%. Starbucks ( SBUX ) was down 6%. Fast Food Giant Yum! Brands ( YUM ) fell 2% while Yum China ( YUMC ), which franchises the KFC, Pizza Hut and Taco Bell brands in China, fell 14%.

Casino owners Wynn Resorts ( WYNN ) and Las Vegas Sands ( LVS ), both based in the Chinese special administrative region of Macau, also tumbled.


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