Portland News

2022 witnesses a positive October for the stock market

Stock market movement largely positive in October this year
Stock market movement largely positive in October this year

Image source: Market Watch

The October stock market is notorious for seeing significant declines over the years, particularly in 1929, 1987, and 2008.

However, the stock market in 2022 managed to avoid similar crashes.

Wall Street investors have nothing to fear as the month ends.

The market continued its October hot streak on Monday and enjoyed another strong rally.


The Dow closed more than 420 points (1.3%) on Monday.

Furthermore, the Dow Jones gained nearly 10% in October, recovering from the steep declines in August and September.

However, blue-chip industrials and other giants of the US economy are still down 13% this year, including:

  • Apple (AAPL)
  • Microsoft (MSFT)
  • Coca-Cola (KO)
  • McDonald’s (MCD)
  • Disney (DIS)

Read also: October starts big as huge rally pulls up the stock market

Federal Reserve

The market rebounded this month in hopes that the Federal Reserve would reverse its aggressive rate hikes to curb inflation.

Strong rate hikes are expected at the Fed meetings on November 2 and later in December.

However, some people hope the Fed can suspend rate hikes next year.

Strong third-quarter results also help strengthen stocks.

The bear market

The S&P 500 rose 1.2% on Monday, while the Nasdaq gained 0.9%.

Both indices are also posting decent gains for October.

The Nasdaq is up more than 3.5%, while the S&P 500 is up almost 6%.

The S&P 500 and Nasdaq are still down more than 20% each this year, putting them in a bear market.

The Nasdaq was in the green zone on Monday, putting it in a better position than others.

Read also: After US stock market hits the worst day since 2020, the market goes steady

The Chinese market and other stocks

Several top Chinese tech stocks trading in the United States dropped due to fears of a crackdown in China.

The crackdown emerged from the news that Xi Jinping will serve a third term as China’s leader.

Meanwhile, the e-commerce company Pinduoduo (PDD) lost more than 25%.

Electric vehicle makers and major Chinese tech stocks posted double-digit percentage losses, including:

  • Nio (NIO)
  • Xpev
  • Li Auto
  • Alibaba (BABA)
  • Baidu (BIDU)
  • Tencent (TCEHY)

Tesla shares fell 1.5%, while Starbucks fell 5.5%.

The fast food giant Yum! Brands (YUM) fell by 2%, while Yum China (YUMC) is down 14%.

Yum China distributes several popular food chains in China, such as:

  • KFC
  • Pizza Hut
  • Taco Bell

Wynn Resorts and (WYNN) and Las Vegas Sands (LVS), casino owners with properties in Macau, also fell.


October surprise? Stocks continue to sizzle this month

Opinions expressed by Portland News contributors are their own.