US stocks rallied on Monday morning after the S&P 500 and Nasdaq Composite fell for the first time since the 2008 global financial crisis for the third straight quarter and the Dow posted its first drop since 2015.
The benchmark S&P 500 Index was up 1% on opening, while the Dow Jones Industrial Average was up 330 points, or about 1.2%. The technology-focused Nasdaq Composite rose 0.7%.
A big move in energy markets kicked off the week, pushing oil prices higher as reports surfaced that OPEC+ was considering a drastic production cut of more than 1 billion barrels per day. West Texas Intermediate (WTI) crude futures surged 5.6% to $83.99 a barrel, while Brent crude rose about 3.9% to $88.45 a barrel.
On the corporate side, shares of Credit Suisse (CS) fell 3% at the start of trading. That’s because his CEO of the global investment bank issued a memo over the weekend in an attempt to calm major investors about the financial health of the institution. Questions about its financial stability.
The bank said last week it was considering potential divestments of assets and certain business units as part of a strategic plan to be announced later this month.
Tesla (TSLA) shares also moved Monday morning. After the electric-vehicle giant reported delivering 343,830 of his cars in the third quarter on Sunday, the company hit a new record as it worked to close factories in China. Still, the numbers were below Wall Street’s expectations, ranging from 358,000 to he 371,000. Stocks fell more than 6% early in the session.
Investors are reeling from a brutal month and quarter when all three major averages entered a bear market. In September the S&P 500 posted his 9.3% loss. This was the worst monthly drop since the pandemic began in March 2020. The Dow fell by more than 8% and the Nasdaq Composite by more than 10%. In the quarter, the index fell about 5.3%, 4.1% and 6.7% respectively.
As Wall Street turned the page, some strategists are looking ahead to October, which has historically been considered the ‘bear market killer’ based on strong returns, especially in midterm election years.Carson The group’s Ryan Detrick says October stocks did well every time the S&P 500 fell more than 7% in September.
This time, however, things are different as earnings are likely to be in a season that is heavily swayed by a significant cut in expectations and weaker fundamentals related to inflation and rising interest rates.
“The focus will be on earnings as we move from an easing shock of rising interest rates to a growth shock,” Luca Paolini, chief strategist at Pictet Asset Management, said in a recent interview. “This is where we are more concerned and next earnings season will be very important.”
Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc
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