Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Dow Slips But Notches Best Month in Decades as Fed Comes Into Focus

Published 31/10/2022, 21:22
© Reuters.
US500
-
DJI
-
MSFT
-
GOOGL
-
AAPL
-
NVDA
-
PARA
-
AMD
-
SLB
-
CL
-
CTRA
-
EQT
-
IXIC
-
ON
-
US10YT=X
-
META
-
GOOG
-
TSPH
-

By Yasin Ebrahim

Investing.com -- The Dow slipped Monday, pressured by tech, but notched its biggest monthly gain in decades as investors shift attention to the Federal Reserve decision later this week.

The Dow Jones Industrial Average fell 0.3% or 128 points, the Nasdaq was down 1%, and the S&P 500 fell 0.7%. The Dow had its best month since January 1976.

A 6% slump in Meta Platforms Inc (NASDAQ:META) led the fall in tech after mostly disappointing quarterly results from big tech.

Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) were down more than 1%.

Falling semiconductor stocks also exacerbated the wobble in tech following pressure from Advanced Micro Devices (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA) and ON Semiconductor Corporation.

ON Semiconductor Corporation (NASDAQ:ON) fell 9% despite quarterly results that beat on both the top and bottom lines and guidance that was in line with Wall Street estimates.  

Treasury yields, meanwhile, steadied after falling last week as investors looked to the start of the Fed’s two-day meeting on Tuesday that is expected to culminate in a decision to lift rates by 0.75% at the fourth meeting in a row. 

But the focus “will be on what comes next, and we expect Chair Powell to hint that the FOMC will likely slow the pace to 50bp in December,” Goldman Sachs said in a note.

Paramount Global (NASDAQ:PARA), meanwhile, fell nearly 4% after Wells Fargo downgraded the company to underweight from equal weight, citing worries about the company’s linear business and uncertainty in streaming.

Energy stocks sidestepped the broader market malaise after shrugging off a decline in oil prices as OPEC lifted its forecast on oil demand in the medium and longer term.

EQT (NYSE:EQT), Coterra Energy (NYSE:CTRA), and Schlumberger NV (NYSE:SLB) were up sharply, with the latter adding to gains from last week ahead of its Investor Day this week.

“While many agree with our view that the digital business and international business at SLB is best in class, there are questions whether investors can express the same view through peers that trade at lower multiples,” Goldman Sachs added.

In other news, Tusimple (NASDAQ:TSP) tumbled more than 45% after firing its chief executive Xiaodi Hou amid a Wall Street Journal report the Federal Bureau of Investigation and Securities and Exchange Commission are investigating whether the self-driving company improperly financed and transferred technology to Hydron.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.