Investors prepared for the first trading day of the month. Hence, stock futures in the United States climbed dramatically in early morning trade Monday.
Market investors are preparing for another week of corporate results, a crucial Fed meeting on Wednesday, and the October jobs report.
Dow futures increased by 159 points. The S&P 500 ends, and the Nasdaq 100 futures both traded in positive territory. Investors will be watching the Federal Reserve’s two-day meeting on Tuesday and Wednesday as earnings season continues this week. The central bank primarily expects to declare that it will begin unwinding its $120 billion monthly bond purchases.
Investors will also be looking for comments from the Fed on rising prices since inflation has reached a 30-year high. The Fed is part of a worldwide campaign to eliminate accommodation, and the market drives right past that.
The Dow Jones Industrial Average
Investors will be looking to the Institute for Supply Management’s October manufacturing index. The second significant event for the week will be Friday’s employment data, which should indicate some recovery in hiring as new COVID-19 cases continue to fall. Dow Jones economists polled predict nonfarm payrolls to rise by 450,000. The prediction came following a paltry 194,000 increase in September, with the unemployment rate falling to 4.7 percent.
How much wage inflation rises and whether the labor force participation rate finally picks up after so many recently came of extended unemployment benefits will be critical to the report. On Friday, the S&P 500 finished the month at a record high, with all three major averages ending at all-time highs.
In October, the Dow Jones Industrial Average climbed 5.8 percent. The S&P 500 gained 6.9 percent in October, while the technology-heavy Nasdaq Composite gained 7.3 percent. The month represented a recovery from September when the major indexes fell.
Excellent earnings drove October’s corporate earnings season despite global supply chain issues. Approximately half of the S&P 500 companies have reported quarterly results, with more than 80% exceeding Wall Street analysts’ earnings estimates.