Wall Street Opens Lower, Dow Heads for Best Month Since 1976

Stock markets in New York started slightly lower on Monday, the last day of the turbulent October stock market. However, despite the sharp price fluctuations in October, the Dow Jones index is heading for a monthly gain of more than 14 percent.

 

The US main index thus has the best month for the stock market since 1976.

Shortly after the start of trading, the Dow was down 0.4 percent at 32,744.38 points. The broad S&P 500 fell 0.7 percent to 3874.03 points, and the tech gauge Nasdaq lost 1 percent to 10,994.93 points. However, the S&P 500 and the Nasdaq, which came under considerable pressure this month due to heavy price losses in the tech sector, are heading towards a monthly gain, partly thanks to Friday’s strong recovery. The indicators on Wall Street thus seem to break the loss series of the two previous months.

The focus on Wall Street this week is mainly focused on the Federal Reserve. The US central bank will announce its interest rate decision on Wednesday. It is widely expected that 0.75 percentage points will raise interest rates in the world’s largest economy for the fourth time in the fight against inflation. However, investors are hoping for a signal from US central bank president Jerome Powell that the end of the substantial interest rate hikes may be in sight. So that interest rates need not be raised as much in the coming period.

Apple fell 1.7 percent. The iPhone maker rose almost 8 percent on Friday thanks to well-received quarterly figures. According to the Reuters news agency, a corona outbreak at a Foxconn factory in Zhenzhou could have severe consequences for Apple. Many employees left the factory where iPhones are made in order not to end up in quarantine. As a result, fewer smartphones could be made up to a third in November.

Walt Disney fell 0.6 percent. Shanghai Disney Resort has unexpectedly closed due to strict preventive corona rules in China. Visitors have gotten stuck in the theme park and surrounding areas like a shopping street. They are not allowed to go home until they have tested negative for the coronavirus. Wynn Resorts added 7 percent. Investors reacted positively to the news that American billionaire Tilman Fertitta has taken a stake in the casino operator.