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Stock Market Today: Dow Rides Hopes for 'Fed Pivot' to Close Higher

Published 10/04/2022, 03:54 PM
Updated 10/04/2022, 04:03 PM
© Reuters.

© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow soared for a second straight day Tuesday, riding high on hopes that the Fed could pivot from its hawkish path of monetary policy tightening as data showed signs of slowing labor demand.  

The Dow Jones Industrial Average gained 2.8%, or 826 points, the Nasdaq was up 3.3%, and the S&P 500 rose 3%.

Job openings fell to the lowest since June last year, and were “very broad-based and spanned most industries and all business sizes,” Jefferies said in a note.

If the slowdown in labor demand continues and core inflation, which excludes food and energy prices, “falls as much as we expect the Fed will not be hiking by 125bp by the year end,” Pantheon Macroeconomics said Tuesday.

Treasury yields continued their retreat in the wake of bets of a less hawkish Fed, helping growth sectors of the economy including tech to build on Monday’s gain.

Apple (NASDAQ:AAPL) ended up 2.5%, while Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) rose more than 3%. 

Twitter (NYSE:TWTR), meanwhile, jumped 22% as Elon Musk is reportedly set to end his legal battle with the social media giant and proceed to acquire the firm at the previously agreed $54.20 per share.

The u-turn from Musk is “a clear sign that Musk recognized heading into Delaware Court that the chances of winning [against] Twitter board was highly unlikely,” Wedbush said in a note.

Energy stocks were the biggest sector outperformer as oil prices climbed 3% a day ahead of an OPEC+ meeting Wednesday that is expected to culminate in a decision to curb oil production.

Hess (NYSE:HES), Halliburton (NYSE:HAL) and Marathon Oil (NYSE:MRO) were among the biggest gainers, each up more than 6%.

In other news, Rivian Automotive (NASDAQ:RIVN) jumped nearly 14% after the electric pickup truck maker said it remained on track to produce 25,000 vehicles in 2022.

Other automakers were also in the ascendency as General Motors (NYSE:GM) rose more than 8%, while Ford Motor (NYSE:F) was up almost 8% after reporting a 16% jump in third-quarter sales.

Latest comments

fed want a "collapse". u had to understand it. a "pain"
How many times do these bulls "hope" for a pivot and the Fed governors continue to say " higher rates for longer" before they get it??
not a bottom yet. if u look in apple chart, u have to understand it.
goodbye bps. goodbye eps. hello pps? no bear bottom yet.
Talk about “pivot” is not serious. Reasonable folks use this rally to take profits, accumulating cash for next drop. Oil stocks are the only safe play around.
i have never heard so much talk about "fed pivot" before.  where is this coming from?  The Fed has been clear they are hiking rates until inflation comes down to 2%.   if it tanks the economy, that will give the desired result.   housing, labor, energy everything still high, no news which says that core CPI has dropped to 2% or even now just 3x that.  its really odd, its as if someone has a mission, a narrative which they put out that gives an antire audience of traders hope that the fed will stop hiking rates before the 2% goal is acheived.    At the same time we have earnings recession, Q3 earnings and projections are going to be far more important.
from perma- bulls who can't, or won't, look at the facts. And manipulators who pump and dump. Dumb and Dumber
So when the market goes down again, it's rate hike fears?
This is a market reaction to the news Buffet back to shopping!
Buffett buys oil.
BIGGEST INVESTMENT JOKE IN THE WORLD.
New short version of same ********
Another miracle in the laughingstock of the investing world.  Another 800 point tightrope walk to a closing high.  The intraday volatility magically vanishes.  None of the intraday shenanigan's seen during every loss.  FRAUDULENT, CRIMINALLY MANIPULATED JOKE.
Saved by the plunge protection team?
If U.S. can control the addiction to money printing, it will lose its key currency status. the other nations as altogether will start cooperating to avoid risks of using dollars.
The "Fed Pivot" is nothing more than an absurd narrative being pushed by HF and Institutional investors to dump their bags onto retail. The fed has kept their word all year. There is no Fed Pivot coming soon.
it is all a fraud, now Bidens favorable will go up and that will help the Dems in November
Thank you for expectations
Market mood is laughable, pivot or not pivot from week to week. Fundamentals did not change. The rest is speculation.
Fed will go to in 2023 to mun 6%. Rate hike shall be at least equal to inflation. It has be like this for decades, or inflation will continue to grow!!!
not sure what traders are looking at, Fed fund futures are pricing in more hawhishness for the last day,week,month.
Ah yes, a FED pivot with inflation still at 200% their target. That won’t entrench these levels and worse for the future, I’m sure.
Fed Pivot- Hope🤣🤣🩸🩸🩸🩸
Maaaaaannnn....can you imagine what would happen if next week, or so, word leaks that the Fed will hike another 75bps? Will make that recent -1200 single day Dow loss look like a carnival event.
Might as well hope for my wife to stop buying shoes... ain't gonna happen
The rallies of the past two days have nothing to do with Wall Street or retail buyers. This two day rally is totally Federal Reserve driven. The Fed is buying it all.
🤣😂
Fed pivots, ez money. Stocks back to all time highs. What can go wrong? Weeeeee
Hope is NOOOOOOOOT a strategy
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