Wall Street made an effort to get the new month and quarter off to a strong start.
U.S. equities futures increased on Monday morning following the end of the first three-quarter losing streak for the S&P 500, Nasdaq Composite, and Dow since the 2008 Global Financial Crisis and the first such losing streak for the Dow since 2015.
The benchmark S&P 500 index futures increased by 0.9% while Dow Jones Industrial futures increased by 275 points, or almost 1%. Contracts on the heavily tech-focused Nasdaq Composite were increased by 0.5%.
The start of the week saw significant changes in the energy markets, with oil prices rising as news broke that OPEC+ was considering a significant production cut of more than one billion barrels per day.
While Brent crude rose nearly 3.9% to $88.45 per barrel, West Texas Intermediate (WTI) crude oil futures rose 4.1% to $82.71 per barrel.
On the business front, Credit Suisse shares dropped as much as 10% before the market opened to a new low after the CEO of the international investment bank attempted to reassure key investors about the institution’s financial stability over the weekend with a memo.
However, the attempt backfired and raised concerns about its financial stability.
Tesla stock moved as well. The industry leader in electric vehicles announced on Sunday that it delivered 343,830 cars in the third quarter, setting a new record even as the firm struggled with the shutdown of its China facility. This news was released on Monday morning.
The number fell short of Wall Street’s predictions, which ranged from 358,000 to 371,000 automobiles, though. Pre-market, shares dropped by more than 4%.
All three major averages entered a bear market during a harsh month and quarter, leaving investors in a state of shock. The S&P 500 had its greatest monthly loss since the pandemic started in March 2020 with a loss of 9.3% in September. The Nasdaq Composite lost more than 10%, while the Dow lost more than 8%. The indices lost about 5.3%, 4.1%, and 6.7%, respectively, over the quarter.
Some analysts are looking ahead to October, which has been dubbed a “bear-market killer” based on historically high returns, particularly in midterm election years, as Wall Street turned the page.
Stocks have performed well in October every time the S&P 500 has declined by 7% or more in September, according to Ryan Detrick of Carson Group.
