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Stock Market Today: Dow in Best Week Since June as Hopes on Slowing Hikes Emerge

AuthorYasin Ebrahim
Published 10/21/2022, 04:03 PM
Updated 10/21/2022, 04:14 PM
© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow rallied Friday, to close out its best week since June as hopes that the Federal Reserve could slow the pace of rate hikes helped cool the surge in Treasury yields and bolstered growth sectors of the market including tech.

The Dow Jones Industrial Average gained 2.5% or 748 points, the Nasdaq was up 2.31%, and the S&P 500 rose 2%.

Growth sectors of the market rebounded following a slump a day earlier as Treasury yields eased from session highs on bets that the Fed may consider slowing the pace of rate hikes.

“[I]nvestors are now considering a December hike of 50-75 bps,” Janney Montgomery Scott said. “Prior to today, sentiment was closer to a 75-100bps potential hike at the next meeting. This recalibration of expectations is what’s helping stocks today.”

Apple (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) rose, with the latter up more than 2% ahead of earnings from big tech next week.

Microsoft’s cloud business Azure is likely to take on added investor attention amid concerns the weakening macroeconomic backdrop is weighing on global enterprise and cloud spending.

Snapchat parent company Snap (NYSE:SNAP), however, slumped 28% after the social media company reported quarterly results that missed on the bottom line and withdrew fourth quarter guidance amid slowing advertising spend.

Snap is likely to be “range bound" amid ongoing macro headwinds, Goldman Sachs said in a note.

Other social media stocks fell sharply, with Twitter (NYSE:TWTR), Pinterest (NYSE:PINS) and Meta Platforms (NASDAQ:META) in the red.

Consumer discretionary stocks were driven higher by a rise in Amazon (NASDAQ:AMZN) and a rebound in Tesla Inc (NASDAQ:TSLA) following a slump a day earlier.

Tesla’s rebound comes even as concerns mount that chief executive officer Elon Musk may be forced to sell more shares to fund the deal to buy Twitter.

Musk may need to sell an additional “$5 billion to $10 billion of Tesla stock” should financing talks fall through this week, Wedbush said in a note on Friday.

Energy was also among the biggest sector gainers, led by a more than 10% rise in Schlumberger NV (NYSE:SLB) after the oil field services firm reported better-than-expected quarterly results.

Latest comments

Can anyone recommend another site where we can converse without all the bots.
Investing. com is totally infected with bots and does NOTHING about it. Could be a great site to stimulate conversation about markets. But they don't care, worthless site. Bye
Slowing hikes mean more inflation and the further erosion of earning power for Main St. Guess that's good news for Wall St....stocks up!!!
rates are being raised blindly with no backside data... thats the fed fear...inflation is price gouging from oil/gas fears and refinery caps more so than "easy to borrow" problems thats why banks beat.. fabricated recession fear to pull wealth from market...inflation wont keep going up as the hikes will have a halt date not a slowing date. they will reach 4.5 and stop imo then they will have a redux period to go through after plateau
every site and troll says buy .... all that means is sell more ... this too will crash as we approach the steepest economic decline in a century
Buying on HOPE is the best reason to buy. No need for anything else. Surely this won't get sold off like every other rally since January right?
lol hopes ... get the _ out of here. The market does not rally on hopes nor falls on fears, be serious. There technicals setting this pullback plain and simple (USD, rates, etc). stop writing this simpleton headlines.
if the USdollar corrects then a Predictable rally could take the S&p500 to 4100 before we see another leg down in the markets..... I see Mitch is still loosing money....he needs to educate himself or find another safer investment....
Technical analysis has been studied repeatedly by financial institutions and educational researchers alike. The likelihood of a pattern hitting is around 51%, statistically identical to a coin flip.
this is why TA is never to be used as a standalone method.
Let's play a game of probabilities and I'll even assume you are absolutely accurate. IF (there's that powerful word again) your models are accurate 60% of the time and they are predicting a 65% chance of a dollar correction, that would mean the odds of a correction are no higher than 40% (rounding up).
The criminal financial defiling of America continues in broad daylight.
They NEVER learn
i love it been waiting for a decent sell. hopes are dangerous to your bank. i would love to see an interim 1000 pt rally.
the higher it goes the harder it falls
Indeed
We're back to hope and optimism as the markets drivers while everything burns arounds us.
Wrong. Trendline reversal coincidence. End of story.
It's gonna be a black monday next week.. 😥
depends on the actions in the currency markets....
the market close does not support what you are saying. very tiny wick at the top of the daily candle, a continuation is more likely at least on monday. that is if nothing out of the ordinary happens.
if anything is true now in the markets, it's you can't predict any directional movement based on a single daily candlestick.
Just in case if anyone really thinks there's hope, the Fed is pretty confident that they will not slowdown rate hikes.
Yasin thinks it's all hope. lol
Hope of slowing rate hikes is what the author thinks why the stock market rallied. Totally trash!
super trash...
🥶
HOPE is not a viable trading strategy
Well...if they based trading on facts and reality, markets would never go up. This is a FED pumped casino now, nothing more nothing less
the Fed isn't pumping. They've been consistent and united on higher rates, softer employment, recession and sustained higher rates for longer to avoid a repeat of the 80s. It's the big boys pumping the markets so they can cash on when the inevitable flush happens, leaving the retail bulls holding the baggies.
Yesterday rate hike worries. Today slowing rate hike hopes. 2YR yield gives the real story. Keep your money close to your chest.
now just prepare publishing another article some other day with just another foolish reason why indices gave up all the gains made throughout the week.
is the fed manipulating the marketm
I sing think it's the Fed. They've been very united and consistent with their actions and statements. It's the big boys pushing the markets higher so they can rake it in even the bottom falls out. All the clueless retail traders will lose their shirts while the big boys happily take their money.
why don't you publish realistic articles? there was huge options expiring today that is the only reason indices pumped with solid fake reason.
great point
slowing hikes based on a WSJ pump article citing a fed speech almost a month old. insane
A lot of retail traders are going to get their as*es handed to them
Why do you think Wall Street has a benefit if retail is squeezed? I mean, you wanna go with the masses just one step ahead but in the SAME position…if they go long and publish such article, whilst retail was short….well why not better go short as well to have a major move…and publish a gloomy article instead?
Hahah! “Slowing hike hopes!”
World is waiting for more rate hikes to flush definitely oil and others commodities
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