People pass the entrance for the Wall Street subway station on Sept. 2, 2024, in New York. (AP Photo/Peter Morgan/The Canadian Press file)


October 15, 2024 Tags:

U.S. stock indexes closed higher on Wall Street, extending their record-breaking momentum. On Monday, the S&P 500 gained 0.8%, following a record set the previous Friday. The Dow Jones Industrial Average recovered from an early dip to rise 0.5%, adding to its own all-time high. The Nasdaq composite also saw a solid increase, climbing 0.9%. This positive trend came after a relatively quiet trading session in Europe, and the U.S. bond market was closed for a holiday.

In China, the finance minister's update on Saturday stirred mixed reactions among investors. Lan Fo’an discussed potential strategies to boost the economy but did not announce any major stimulus measures that many had anticipated. This led to fluctuations in Chinese stocks; while Shanghai’s index surged by 2.1%, Hong Kong's Hang Seng fell by 0.7%. Concerns over reduced demand from China’s slowing economy contributed to a nearly 2% drop in crude oil prices.

Analysts have recently been hopeful about stimulus efforts in China, which had previously lifted Chinese stocks from their years-long slump. However, skepticism remains about the government's ability to rejuvenate the economy significantly. Morgan Stanley Wealth Management's chief investment officer, Lisa Shalett, noted that while the measures are welcome, they may not be enough to initiate a new growth cycle.

Commodities like copper also saw price declines, reflecting concerns about demand from China. This negatively impacted mining companies, with Freeport-McMoRan down 2.8%, one of the largest losses in the S&P 500.

Boeing faced challenges, dropping 1.4% after announcing a projected cash burn of $1.3 billion and a loss of $9.97 per share for the last quarter. The company also revealed plans to lay off 10% of its workforce amid a strike affecting its production.

On a brighter note, SoFi Technologies surged 10.3% after announcing a $2 billion loan agreement with Fortress Investment Group. Longboard Pharmaceuticals soared 51.2% following an all-cash acquisition deal valued at $2.6 billion with H. Lundbeck.

Looking ahead, the week promises few major economic reports, with attention shifting to corporate earnings. Key reports from Bank of America, Johnson & Johnson, and UnitedHealth Group are due on Tuesday, with more from United Airlines, Netflix, American Express, and Procter & Gamble later in the week. Analysts expect S&P 500 companies to report a 4.1% growth in earnings per share compared to last year, marking a fifth consecutive quarter of growth. This consistent profit growth could help ease concerns over the high valuations in the stock market, as investors remain optimistic about the Federal Reserve's approach to managing interest rates and the economy's overall strength.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

You may also like

Wall Street Eyes Market Dips, But When Will It Be Safe to Buy?

The U.S. stock market is wrapping up one of its roughest quarters since the 1980s, trailing global markets by the....

Energy Stocks Boost S&P/TSX, U.S. Markets Mixed Ahead of Tariffs

Canada’s main stock index climbed on Monday, driven by gains in energy and industrial shares as oil prices surged. Meanwhile,....

Canada’s Economy Faces Slowdown as Tariff Pressures Rise

The Canadian economy started 2025 with momentum but is now losing steam due to harsh winter conditions and the looming....

Markets Slide 400 Points as Tariff, Inflation Fears Grow

Canadian and U.S. stock markets took a sharp dive on Friday as investors reacted to concerns about inflation and looming....

Stock Markets React as U.S. Auto Tariff Plans Shake Industry

Canada’s stock market remained unchanged on Thursday, while U.S. markets saw a dip following President Donald Trump’s announcement of new....

GameStop’s Bold Bitcoin Move Sparks Market Concerns

GameStop’s stock took a nosedive on Thursday after the company announced a controversial plan to sell debt and use the....

ICBC Announces $110 Rebates for Eligible Drivers

Many ICBC customers will soon receive $110 rebates, as the auto insurer distributes a new round of refunds. The rebates,....

Wall Street Holds Steady as Trump Media Soars Despite Market Uncertainty

Wall Street showed resilience on Tuesday, following a strong surge the previous day fueled by optimism that President Donald Trump’s....

S&P/TSX Gains as Metal Stocks Rise; U.S. Markets Also Up

Canada’s stock market saw a steady rise in late-morning trading, driven by gains in base metal stocks. The S&P/TSX composite....

Trump’s Tariff Shift Shakes U.S. Treasury Market

U.S. Treasury bonds took a hit as investors shifted toward riskier assets following reports that President Donald Trump’s upcoming tariffs....

Trump’s Trade War Reshapes Canada’s 2025 Election Debate

The rising cost of living has been a major issue for Canadians, and with the federal election on the horizon,....

Stock Markets Gain as Investors Eye Targeted US Tariffs

Stock futures in the US and Europe climbed on hopes that the next wave of tariffs from President Donald Trump’s....