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Stocks Close Out Week on a Strong Note Amid Selloff Fears

Strategic Insights

— 2 min read

The Dow Jones Industrial Average rallied 0.9% in the final session of the week, led by Walt Disney and Salesforce, which both reported gains of nearly 3%. The strong performance was fueled by a record September jobs report, which sent investors scrambling for safety in bonds and sparking concerns about a potential Federal Reserve rate hike.

Key Takeaways:

  • The Dow Jones Industrial Average closed up 0.9% after a stronger-than-expected September jobs report fueled a selloff in the bond market.
  • Walt Disney and Salesforce were the top performers on the Dow Jones, each posting gains of nearly 3%.
  • Caterpillar, Microsoft, and Honeywell also posted gains of at least 2%, while Walmart shares fell nearly 2% after the company suggested that popular weight loss drugs are impacting food sales.
  • The 10-year Treasury yield peaked at 4.88% early in the session but declined to 4.79% after the close due to buying in an oversold bond market.
  • Federal Reserve traders expect a 32% chance of a 25-basis-point hike in interest rates at the November meeting, with the fed funds rate potentially reaching a range of 5.50% to 5.75%.
  • Automakers General Motors, Ford, and Stellantis strengthened late in the session after the United Auto Workers (UAW) said it would not expand strikes following a last-minute proposal from GM.
  • The Nasdaq composite jumped 1.6%, with Meta Platforms and Nvidia leading gains in large-cap technology stocks.
  • The S&P 500 picked up 1.2%, driven by a big gain for Pioneer Resources, which may be acquired by Exxon Mobil for $60 billion.
  • WTI crude oil futures settled at $82.79 a barrel, up 0.6%, but declined nearly 9% for the week.
  • Winners beat losers on the NYSE by a little more than 2 to 1, with the S&P 500 moving above its 10-day moving average but still lagging its 21-day and 50-day lines.
  • Growth stocks such as PDD Holdings, Vertiv, and Cadence Design Systems reported significant gains, with Palo Alto Networks outperforming as security software stocks rallied.

Statistics:

  • Dow Jones Industrial Average closed up 0.9%.
  • Walt Disney and Salesforce gained nearly 3%.
  • Caterpillar, Microsoft, and Honeywell posted gains of at least 2%.
  • Walmart shares fell nearly 2%.
  • 10-year Treasury yield peaked at 4.88% early in the session.
  • 10-year Treasury yield declined to 4.79% after the close.
  • Federal Reserve traders expect a 32% chance of a 25-basis-point hike in interest rates at the November meeting.
  • Fed funds rate potentially reaching a range of 5.50% to 5.75%.
  • Nasdaq composite jumped 1.6%.
  • S&P 500 picked up 1.2%.
  • WTI crude oil futures settled at $82.79 a barrel, up 0.6%.
  • Winners beat losers on the NYSE by a little more than 2 to 1.
  • S&P 500 moving above its 10-day moving average but still lagging its 21-day and 50-day lines.

Sources:

  • CNBC
  • Bloomberg
  • The Wall Street Journal
  • Forbes
  • Yahoo Finance

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