Dow 30 posts double-digit percent gains, beats S&P 500 and Nasdaq 100 in October | The Financial Express

Dow 30 posts double-digit percent gains, beats S&P 500 and Nasdaq 100 in October

Will it be a comeback for some old-economy stocks in 2022 remains to be seen?

Dow 30 posts double-digit percent gains, beats S&P 500 and Nasdaq 100 in October
The fact that the Dow Jones Industrial Average or Dow 30 exclusively includes US-based businesses sets it apart from other indices.

With two months left for the calendar year 2022 to end, the stock market could be showing signs of a recovery. Dow posted one of the best months in decades by clocking nearly 13.95% in October. The broader S&P 500 index held the ground, after falling heavily in September, and was up by 2.14%, while Nasdaq 100 saw a fall of about 1.53 per cent by the month-end.

Some of the top gainers in October which are part of the Dow 30 index were Caterpillar (31.92%), Chevron (25.91%), Honeywell (22.19%), JP Morgan (20.46%) and The Travelers Companies (20.40% ).

Earlier, US stock prices had their worst September in 20 years, but October got off to a strong start when the Dow 30 index soared 2.8% higher on the first trading day in October. At that time, a short squeeze was considered to be a big factor behind the rebound in equities.

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What could be working in favour of Dow 30 stocks is the report from The Institute for Supply Management’s indicator of factory activity that fell in early October, raising concerns about a possible slowdown in the economy.

The Fed’s goal is to slow the economy and control inflation by doing so. For stock market investors, if economic activity is truly slowing down, this is good news. It implies that the US Fed won’t feel compelled to raise rates quickly, preventing a tightening of the liquidity conditions any further.

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The fact that the Dow Jones Industrial Average (DJI) or Dow 30 exclusively includes US-based businesses sets it apart from other indices. The index, which is made up of the top 30 blue-chip corporations, serves as a gauge for the US economy, its industries, and consumer trends. Will it be a comeback for some old-economy stocks in 2022 remains to be seen?

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First published on: 01-11-2022 at 17:31 IST