Stock Market Close: Indices Recover Losses, Trump Boosts Speculative Sector
A delayed CPI Report will hit on Friday morning, but rate cuts are already locked in.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
The S&P 500 and Nasdaq fully recovered the losses they suffered on Wednesday, while many growth stocks bounced back but still have a long way to go to return to recent highs. It was an upbeat day of action as Tesla (TSLA) recovered from a selloff on its earnings report, and 62% of stocks finished in the green.
News that President Trump will meet with Chairman Xi Jinping on October 30 provided a boost. Strength in oil stocks after the U.S. announced sanctions on Russia’s biggest oil companies also helped the stock market. Speculative stocks benefited from talk that Trump is considering investing in quantum computing companies to gain an advantage over China in a race for technical superiority.
The September CPI report, delayed by the government shutdown, will be released on Friday morning. It is old news at this point, but it will generate some interest. The Fed is locked in to cut rates at its next meeting next week, on October 29, so CPI will be a major surprise if it has an impact.
More earnings are coming up, but the market has handled a couple of negative surprises from Tesla and Netflix (NFLX) without much effort, which bodes well for Magnificent Seven reports next week.
The biggest change in the market has been the aggressive profit taking in speculative stocks and growth names, but both groups are finding some support, and that is key. The longer things stay green, the more likely that buyers will increase exposure.
Have a good evening. I’ll see you tomorrow.
At the time of publication, DePorre had no positions in any securities mentioned.
