Stocks rise sharply as Wall Street crawls out of a brutal September


US stocks rebounded Monday morning after the S&P 500 and Nasdaq Composite closed their first three-quarter loss streak since the 2008 global financial crisis, and the Dow posted its first such streak since 2015.

The benchmark S&P 500 index gained 1% on opening, while the Dow Jones Industrial Average rose 330 points, or about 1.2%. The tech-heavy Nasdaq Composite advanced 0.7%.

Significant moves in energy markets kicked off the week, with oil prices swinging higher as reports surfaced that OPEC+ is considering a major production cut of more than a billion barrels per day. West Texas Intermediate (WTI) crude futures rose 5.6% to $83.99 a barrel, while Brent crude climbed about 3.9% to $88.45 a barrel.

On the business front, Credit Suisse (CS) shares fell 3% at the start of trading after the CEO of the global investment bank issued a memo over the weekend trying to calm major investors about the institution’s financial health. — an effort that backfired and instead raised questions about financial stability.

The bank said last week it is exploring potential sales of assets and certain business units as part of a strategic plan to be unveiled by the end of the month.

Shares of Tesla (TSLA) were also on the move Monday morning after the electric vehicle giant reported Sunday it had delivered 343,830 cars in the third quarter, a new record that came even as the company struggled to close its Chinese factory. Still, the figure fell short of Wall Street’s expectations, which ranged from 358,000 to 371,000 vehicles. At the start of the session, the stock fell more than 6%.

A Tesla Model 3 electric vehicle (EV) is on display at the China International Fair for Trade in Services (CIFTIS) in Beijing, China, September 1, 2022. REUTERS/Florence Lo

Investors are reeling from a brutal month and quarter in which all three major averages entered a bear market. In September, the S&P 500 posted a 9.3% loss, the worst monthly decline since the start of the pandemic in March 2020. The Dow was down more than 8% and the Nasdaq Composite more than 10%. For the quarter, the indices fell approximately 5.3%, 4.1% and 6.7%, respectively.

As Wall Street turned the page, some strategists are looking ahead to October, which has been viewed as a “bear-market killer” based on historically strong returns, especially in the midterm years. Every time the S&P 500 has fallen 7% or more in September, stocks have done well in October, noted Carson Group’s Ryan Detrick.

However, a high-stakes earnings season likely caused by lowered forecasts and deteriorating fundamentals linked to inflation and rising interest rates makes this time different.

“The focus will be on earnings as we move from a moderation shock with higher interest rates to a growth shock,” Luca Paolini, chief strategist at Pictet Asset Management, told Yahoo Finance Live in a recent interview. “This is what we’re more concerned about and the next winning season is going to be really crucial.”

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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The Valley Voice
The Valley Voice
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.


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