- US stocks fell slightly on Monday as investors anticipate another outsized interest rate hike from the Fed this week.
- Fed Chair Jerome Powell is expected to hike rates by another 75 basis points at its FOMC meeting on Wednesday.
- The Dow Jones notched its best month of October on record, rising 14% as third-quarter earnings came in solid.
US stocks fell on Monday but the Dow Jones Industrial Average set records as investors weigh an imminent rate hike from the Federal Reserve against solid third-quarter earnings results.
Fed Chairman Jerome Powell is expected to announced that the US central bank will raise rates by 75 basis points at its upcoming FOMC meeting in its bid to tame inflation that has been driven by higher wages, services prices, and commodity prices. After this Wednesday’s meeting, the Fed is expected to hike interest rates by at least 50 basis points in December.
Aside from more rate hikes, investors continue to focus on third-quarter earnings results, which have mostly beaten expectations. So far, 52% of S&P 500 companies have reported results, and of those companies, 72% topped profit estimates by a median of 5%, according to data from Fundstrat.
The Dow Jones Industrial Average notched its best October on record, rising about 14% and exceeding the prior record of 10.6%. The strong monthly gain also represented the Dow Jones’ best overall month since 1976.
Here’s where US indexes stood at the 4:00 p.m. ET close on Monday:
Here’s what else happened today:
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 2.15% to $86.01 per barrel. Brent crude, oil’s international benchmark, fell 3.53% to $92.39.
- Gold dipped 0.57% to $1,635.40 per ounce.
- The yield on the 10-year Treasury rose 5 basis points to 4.07%.
- Bitcoin ticked down 0.68% to $20,388, while ether slipped 1.19% to $1,565.