Stock Market Recap: Why Was the Market Up Today? – October 28, 2024
Major Indexes Climb as Big Tech Earnings Week Begins
The U.S. stock market showed strength on Monday, October 28, 2024, as investors eagerly anticipated a week filled with crucial earnings reports from tech giants. The S&P 500 rose 0.4%, the Dow Jones Industrial Average gained 0.7%, and the Nasdaq composite climbed 0.5%, approaching its all-time high set in July .
Key Factors Driving Today’s Market Performance
1. Big Tech Anticipation: Five of the “Magnificent Seven” tech companies – Alphabet (GOOGL), Meta Platforms (META), Microsoft (MSFT), Apple (AAPL), and Amazon (AMZN) – are scheduled to report their latest profits this week. These high-flying stocks have been at the forefront of Wall Street’s recent gains and are under pressure to deliver strong growth .
2. Oil Price Plunge: Crude oil prices tumbled more than 5%, heading towards their worst loss in over a year. This decline came after Israel’s retaliation against Iran proved more restrained than some investors had feared, easing concerns about potential supply disruptions in the Middle East .
3. Economic Optimism: Recent reports have shown the U.S. economy remains stronger than expected, bolstering hopes for a “soft landing” scenario where inflation is tamed without triggering a recession .
Sector Performance and Notable Stocks
– Technology: The tech sector led the day’s gains, with the Nasdaq approaching its record high .
– Energy: Oil and gas stocks faced pressure due to falling crude prices. Exxon Mobil (XOM) dropped 0.6%, while ConocoPhillips (COP) slid 1.4% .
– Trump Media & Technology Group: The company’s stock surged 20.3% to $46.87, continuing its rally since late September .
– Delta Air Lines (DAL): Shares rose 3.8% following news of a lawsuit against CrowdStrike .
Upcoming Market Events to Watch
1. Big Tech Earnings: Investors will closely monitor the financial results and forecasts from Alphabet, Meta, Microsoft, Apple, and Amazon throughout the week .
2. U.S. Jobs Report: The employment data scheduled for release on Friday could be the market’s main event, potentially overshadowing even the Big Tech earnings. Investors are looking for evidence of continued solid hiring to support the “perfect landing” economic scenario .
3. Federal Reserve Expectations: While inflation concerns have waned, the strong economic data has led to a reassessment of potential Fed rate cuts. The 10-year Treasury yield rose to 4.29%, reflecting these shifting expectations .
Market Outlook and Investor Sentiment
As we approach the U.S. presidential election, markets are experiencing typical pre-election volatility. However, historical trends suggest that markets tend to stabilize post-election, regardless of the outcome .
The current market sentiment appears cautiously optimistic, with investors balancing strong economic indicators against geopolitical tensions and the high expectations set for tech earnings. The week ahead will be crucial in determining whether the market can build on its recent gains and potentially reach new record highs.
In conclusion, Monday’s market performance sets the stage for a pivotal week in the financial world. With major tech earnings, key economic data, and ongoing geopolitical developments on the horizon, investors should stay alert to potential market-moving events in the coming days.
