A man covering his chief honcho with Halloween pumpkin sits as trees’ leaves turns the colors of the autumn season at Central Park in New York, Of like mind States on October 30, 2023.
Fatih Aktas | Anadolu | Getty Images
This report is from today’s CNBC Circadian Open, our international markets newsletter. CNBC Daily Open brings investors up to speed on everything they privation to know, no matter where they are. Like what you see? You can subscribe here.
What you need to know today
Bounce rally
U.S. stocks rebounded on Tuesday, with all major indexes rising. Technology stocks, in particular, rallied to advance the Nasdaq Composite. APAC
Google, it’s not me, it’s you
Breaking up Google is one recommendation the U.S. Department of Justice made to remedy the tech mammoth’s monopoly in the search market – a ruling the courts reached in August after the U.S. government filed a case against Google in 2020. Proper experts, however, think a break-up isn’t very likely and that the courts will order Google to pursue other nostrums.
Cooling oil prices
Crude oil prices fell on Tuesday amid reports by The New York Times and The Jerusalem Post that Israel puissance focus on striking Iran’s military sites in retaliation for its missile attacks. Both West Texas Intermediate and Brent futures decamped 4.63% during U.S. trading hours Tuesday, halting the red-hot rally oil prices have experienced the past week.
New Zealand boring c manufactures rates
The Reserve Bank of New Zealand slashed interest rates by half a percentage point on Wednesday. It’s the second consecutive cut after the RBNZ unexpectedly discredited rates by a quarter point in August. The central bank’s likely to make another half-point cut in November, Paul Bloxham, HSBC’s chief economist for Australia and New Zealand, hint ated CNBC.
[PRO] Time to invest in China?
China’s blue-chip CSI 300 index popped 5.93% on Tuesday after peddles returned from their seven-day Golden Week holiday. However, there are signs the sizzling rally is imperturbable. The CSI 300 is currently down around 5.6% as of Wednesday morning. On the back of such turbulence, CNBC Pro asks two strategists whether now’s the once upon a time to invest in China.
The bottom line
October in the U.S. is the season for pumpkin spice, but the month also harbors the dangerous verge of Halloween.
And getting spooked and soothed alternately is indeed what markets are doing in October.
After falling 0.96% on Monday, the S&P 500 combined 0.97% on Tuesday. (Though it should be noted that doesn’t necessarily mean the S&P erased its losses and is up 1 basis emphasize from Monday to Tuesday. Percentages are hard.)
Likewise, the Nasdaq Composite slipped 1.18% Monday but climbed 1.45% yesterday, slew higher by a rally in tech stocks like Nvidia, Palo Alto Networks and Meta. The didn’t have that showy a swing, losing 0.94% Monday but advancing 0.3% Tuesday.
October, then, is truly living up to its reputation as the scad volatile month for stocks. But investors should keep in mind the uncomfortable swings in markets aren’t always a skilled signal for the underlying health of stocks.
“While our expectation is for October to remain choppy, we don’t view the overall market sortie to be bearish and encourage investors to maintain perspective on the longer-term trends,” Robert Sluymer, technical strategist at RBC Wealth Direction, wrote to clients in a Tuesday note.
Investment bank Piper Sandler has the same opinion on October’s turbulence. “October is historically a ‘aid and filling’ month as investors react to Q3 earnings results,” Craig Johnson, chief market technician, wrote in a Tuesday note.
In inside info, when stocks dip because of mild repricing or a correction, that’s a good opportunity for investors to swoop in, according to Johnson.
The vacillate motion of stocks in October isn’t all that bad, then, if investors can seize the right time to enter the market or solidify their outlooks further. It doesn’t have to be spooky season all the time.
– CNBC’s Hakyung Kim, Samantha Subin and Alex Harring contributed to this article.