Two Day Stock Market Surge Ahead of Midterms

November 1, 2018
966 Views

October has been a bad month for the stock market. Heightened volatility, some of the worst single day slides of the year, and general investor unease have left analysts scrambling to find the light at the end of a very dark tunnel.

October is traditionally very volatile, so the past four weeks were not entirely unexpected. The most upbeat analysts predicted that the month could lead into an end of year rally, and there’s still a good chance of that happening.

The Dow Jones has surged 673 points in the last two days, leaving everyone in the market hopeful that the worst is over.

Earnings Reports Have Increased Confidence

Some of the largest stocks have released their quarterly earnings reports this week, which has led to an increase in investor confidence. Facebook (NASDAQ: FB) made strong gains this week after it beat quarterly forecasts. eBay (NASDAQ: EBAY) easily met analyst estimates, leading to 5.87% growth on Wednesday. General Motors (NYSE: GM) was an unexpected gainer, with stock price increasing 9.09% after it exceeded revenue expectations.

More of the largest cap stocks will report earnings in the coming weeks, with companies like Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) expected to produce strong results.

How are the Largest Exchanges Performing?

The Dow Jones Industrial Average index, which tracks the largest companies on the stock market, went up 0.97% on Wednesday. The Dow Jones is often used as a benchmark of overall stock market performance, and growth on this index can boost confidence levels for investors across the board.

The NASDAQ Composite index, which is heavily tech-weighted, went up 2.01% by the close of trade on Wednesday. The NASDAQ is up 2.78% when tracking data over the last five days of trading, which has helped to earn back some of the losses suffered during October.

The NYSE Composite index is also up. At the close of the market yesterday it was 0.64% in the green. Total value has increased 1.99% over five days.

Stock Market: Is the Worst Over?

Trade uncertainty, tariffs, interest rates, and even the threat of volatility feeding on itself have all contributed to an October that most would want to forget. Analysts are now optimistic that November could come with renewed enthusiasm on the market, especially after the midterm elections.

While there’s never a way to fully predict the market, the average investor will be hoping that the analysts are right.

You may be interested

Job Hiring is Picking Up as Employers and Consumers Gain Confidence
Economy
575 views
Economy
575 views

Job Hiring is Picking Up as Employers and Consumers Gain Confidence

Lamont J - March 29, 2021

The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news…

Fed Could Maintain 0% Interest Rate Until 2024
Economy
510 views
Economy
510 views

Fed Could Maintain 0% Interest Rate Until 2024

Adam R - March 26, 2021

The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…

Supply Constraints Could Slow the Home Market
Economy
582 views
Economy
582 views

Supply Constraints Could Slow the Home Market

Becky H - March 25, 2021

Low inventory has been a constant in the home market for more than a year. The supply of existing and…