Stocks reversed direction and climbed to records Friday, capping a strong October as several catalysts all came together at once. Friday, the Dow Jones Industrial Average ended the day up 89 points, or 0.3%, to close at a record 35,819.56.
The S&P 500 rose 0.2% to close at a record 4,605.38. The Nasdaq Composite gained 0.3% to 15,498.39, also a record closing high.
October was a strong month for stocks. The S&P 500 has gained 6.9% for the month of October. The Nasdaq and Dow posted monthly gains of 7.3% and 5.8%, respectively.
The indexes rebounded from an early autumn drawdown: In September, concerns about supply chain constraints and rising bond yields pushed stocks lower.
Several factors enabled stocks to rebound this month. Bond yields have paused in their larger ascent. Companies have
S&P 500, Nasdaq Hit Record Highs. Growth Worries Boosted Tech Stocks.
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Corporate earnings remain in the spotlight, with Apple and Amazon among the companies reporting results Thursday. Continue reading. And while risks still remain—yields aren’t necessarily finished rising and supply chain constraints aren’t easing much—retail investors bought the dip.
Although the major indexes rose on Friday, the market was weaker than it looked. The slight majority of S&P 500 stocks were in the red, according to FactSet.
This comes as bonds yields slipped, indicating markets are reflecting slightly less optimism on long-term economic demand and inflation. The 10-Year Treasury yield fell to 1.56% from hitting 1.61% earlier.
Markets are increasingly expecting a Federal Reserve rate hike — in response to rapidly rising inflation in the near-term — sooner rather than later, which could hurt the economy. Some on Wall Street have recently flagged the dynamic in the bond market as a potential risk to monitor. Sources.