The stock market rallied on Tuesday, with the tech-heavy Nasdaq Composite leading the charge.
Chinese shares soared to two-year highs in frenzied trade on Tuesday, extending a blistering rally as mainland markets reopened after a week-long break, while Hong Kong shares slid as investors walked back some of the stimulus excitement.https://t.co/dUiz3EteOa
— Lorenzo Lamperti (@LorenzoLamperti) October 8, 2024
The index rose around 1.5%, while the S&P 500 gained about 1% to close within striking distance of its previous record high. The Dow Jones Industrial Average edged up roughly 0.3%.
Nvidia, the chipmaker at the forefront of the artificial intelligence boom, was a key driver of the market’s gains. The stock rose another 4% on Tuesday amid continued bullishness around AI. Other tech giants, such as Amazon and Alphabet, also finished the session firmly in the green.
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Here's his analysis on a possible bounce back, Nifty, retail-dominated stocks and PSUs?#StockMarket #Nifty pic.twitter.com/Ex79lR0lds
— ET NOW (@ETNOWlive) October 9, 2024
Stocks To Watch | ? Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket pic.twitter.com/j2xA399ovk
— ET NOW (@ETNOWlive) October 9, 2024
Investors also turned their attention to monetary policy, with markets still grappling with busted hopes for jumbo interest rate cuts. New York Fed President John Williams stated that Federal Reserve policy is “well positioned” to achieve a “soft landing” for the economy. Fed Governor Adriana Kugler emphasized the need to watch the upcoming CPI inflation report for further clues on the path forward for interest rates.
Chinese Shares Surge at Reopen, Asian Stocks Fall
CSI 300 index gained as much as 11% to start the session. Shares dropped in Japan, South Korea and Hong Kong after Wall Street was dragged down by a tech selloff,
— Shankkar Aiyar ?? (@ShankkarAiyar) October 8, 2024
The recent surge in Chinese stocks hit a pause on Tuesday after Beijing refrained from enacting further stimulus measures, surprising investors who expected more robust support.
Nasdaq rally boosted by Nvidia
Hong Kong’s benchmark Hang Seng Index saw its worst day since October 2008, following a significant rally over the past month.
Oil prices retreated as the recent rally stemming from the Middle East conflict paused and China disappointed investors with its stimulus measures. West Texas Intermediate and Brent crude futures both slipped more than 4.5%. Looking ahead, the markets will closely watch further developments in interest rates, geopolitical tensions, and corporate earnings as key indicators for future performance.
The third quarter earnings reporting period will begin in earnest when some of the nation’s largest banks report quarterly results on Friday. Wall Street projects earnings to grow 4.7%, marking the fifth straight quarter of growth. However, Deutsche Bank chief equity strategist Binky Chadha isn’t expecting the typical 2% rise in the S&P 500 during the first four weeks of earnings reports, citing the strong rally and above-average positioning going in.
As investors continue to monitor the market, many are looking to tools and strategies to navigate earnings season volatility. The stock market’s rebound on Tuesday was driven by the impressive performance of tech giants, with Nvidia extending its winning streak. The bullish sentiments were further reinforced by lower oil prices and a steadying 10-year Treasury yield.
