Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

S&P 500 Rallies as Grim Economic Data Fuels Bets on Fed Pause

Stock Markets Oct 03, 2022 03:48PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters
 
US500
-1.54%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
-1.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MSFT
-2.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOGL
-1.45%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
AAPL
-2.63%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MRO
-1.88%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Yasin Ebrahim

Investing.com -- The S&P 500 jumped Monday, starting the final quarter of the year on the front foot, led by tech and energy on hopes that signs of slowing growth will force the Federal Reserve to slow the pace of rate hikes.

The S&P 500 rose 2.8%, the Dow Jones Industrial Average gained 2.9%, or 834 points, and the Nasdaq was up 2.5%.

A duo of weaker-than-expected economic reports showing manufacturing activity unexpectedly slipped into contraction, and construction activity was worse than feared, stoked optimism somewhat that the Fed may be forced to consider a pivot to avoid pushing the economy into a deep recession.

ISM manufacturing data  for September showed a drop to 50.9 from 52.8, well below economists’ forecasts for a drop to 52.2. A reading above 50 in the ISM index indicates an expansion in manufacturing, which accounts for about 12% of the U.S. economy.

The odds of the Fed delivering its fourth-consecutive 75-basis-point rate hike fell 59% from 72% a week ago, according to Investing.com’s Fed Rate Monitor Tool.

Treasury yields fell sharply as investors priced in the prospect of a less hawkish path of monetary policy tightening.

The 10-year Treasury yield fell from more-than-a-decade highs, with further easing likely ahead as it “remains very overbought on a short-term basis,” Janney Montgomery Scott said in a note.  

Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) rose more than 3%.

Peloton Interactive (NASDAQ:PTON), meanwhile, announced an agreement to supply Hilton-branded hotels in the U.S with its fitness bikes, as CEO Barry McCarthy ramps up efforts to turn around the fortunes of the connected fitness-equipment company. Its shares were up about 7%.

Energy, up about 4%, also did some of the heavy lifting in the broader market melt-up on media reports that OPEC and its allies, known as OPEC+, are mulling slashing output by more than 1 million barrels per day ahead of Wednesday’s meeting.

Marathon Oil (NYSE:MRO) was up more nearly 11%, while Devon Energy Corporation (NYSE:DVN) and APA Corporation (NASDAQ:APA) were up more than 9%

Tesla (NASDAQ:TSLA), meanwhile, slumped 8% after reporting that it delivered 343,000 vehicles in the third quarter, missing Wall Street estimates of between 358,000 and 371,000 vehicles.

Following the announcement, JPMorgan said it remained wary of Tesla’s valuation and continued to “see large downside to our price target [of $153],” suggesting about 37% downside from Tesla's current price. 

S&P 500 Rallies as Grim Economic Data Fuels Bets on Fed Pause
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (8)
James Vandervest
James Vandervest Oct 03, 2022 4:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In my trading account, I am short on this market because of the financial malfeasance of the government, the Fed, and central banks. Obviously, today was not great, but took profits from my long positions and opened a couple more TQQQ puts, and bought a couple of shares of SQQQ in addition to what I had, going by the previous patterns tomorrow will be a big red day again, if not then Weds when the Fed talks or Thurs at the latest if the pump bois manage to hang on that long.
Prison Mike
Prison Mike Oct 03, 2022 3:59PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market manipulation at its best.
Mitchel Pioneer
Mitchel Pioneer Oct 03, 2022 3:49PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Intraday volatility magically vanishes.  BIGGEST INVESTMENT JOKE IN THE WORLD.
Casador Del Oso
Casador Del Oso Oct 03, 2022 3:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When did the FED actually say anything about pivoting? We heard this story before by the forever hopeful.
Peter ONeill
Peter ONeill Oct 03, 2022 3:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market grasping at straws - FED already made clear they will do anything it takes to get inflation down and keep it down. Energy prices also rising and OPEC might be cutting supply on Wednesday so get ready for inflation to start rising from Nov / Dec
Robert Cox
Robert Cox Oct 03, 2022 3:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's going up because Friday saw intraday 52wk lows and there's no major data released today. The data that was released is negative and the Fed has said repeatedly that they won't pause until there is a significant decrease in inflation. Market will be red tomorrow with a headline of "market crashes because investors sobered up."
Peter ONeill
Peter ONeill Oct 03, 2022 3:17PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can see it green tomorrow - Red on Wed after Opec meets and energy starts rising again
Mike Hawk
Mike Hawk Oct 03, 2022 3:12PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed will go back into QE and Zero rates while CPI prints continue to hit record highs. Hyperinflation is here.
Matt Kay
Matt Kay Oct 03, 2022 3:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Save the stonk market! Ef the people
G D
G D Oct 03, 2022 3:10PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
They never learn do they? They also thought the FED would stop and insisted on pumping the market during the whole fake rally of August
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email