Major US stock indexes recently closed mostly higher, with the S&P 500 experiencing a six-day winning streak (it added 16.56 points to 4,536.19, bringing it under 0.2% away from its own record). The Dow Jones Industrial Average also gained 152.03 points and reached an all-time high of 35,669.69 as investors were encouraged by surprisingly strong earnings reports. After overcoming a slew of worries, including, covid variants, supply chain problems, and increasing inflation, the Stock Market Happenings is now hopefully on an upward streak.
Greater market clarity- Stock Market Happenings
The market was thought to be given a boost by freshly-released minutes from the Federal Open Market Committee’s September meeting. The minutes showed the central bank likely intends to start tapering its asset-purchase program (designed to support the economy during the pandemic) in November. “You’re starting to get a framework of how they’re going to go about it, and the market is really just desperate for some clarity,” said J.J. Kinahan, chief strategist with TD Ameritrade. “At least we’re starting to see the game plan.”
Technology stocks are largely rising with giants like Alphabet (Google’s parent company), Amazon, Microsoft, Zoom, Nvidia, and Salesforce all gaining. When interest rates are low, stock prices typically increase since the company’s future revenue in turn experiences projected growth. Apple shares, however, recently dropped 0.4% shortly following news of iPhone 13 production likely to be halted due to chip shortages. The S&P 500 and Nasdaq Composite are also growing thanks to the overall strong tech sector. Moreover, investors looking for the latest opportunities in technology and tech-related stock can benefit from dedicated, in depth research services. For example, the Near Future Report by Jeff Brown, a popular investing guru, sends out monthly newsletters packed with extensive research, analysis, and stock picks, including tech stock picks.
Record highs expected for S&P 500
The S&P 500 could soon be in for a record high, which would be a bullish sign for the market going forward. “History shows that stock market advances following the recovery from pullbacks recorded an average price gain of 8.4% over the following 98 calendar days before slipping into a new decline of 5% or more,” comments Sam Stovall, chief investment strategist at CFRA. “Favorable seasonal factors should also help power the market to additional new highs”.
It’s hoped the market continues to maintain its upward momentum. Impressive third quarter earnings are ultimately helping investors overcome past uncertainties and celebrate recent wins.