Markets gained between Oct. 31 and Nov. 6 as investors remained optimistic regarding the possibility of no further interest rate hikes.
Markets closed in the green on Tuesday following mixed third-quarter earnings releases. The Dow Jones Industrial Average added 0.4%, the S&P 500 added 0.7% and the Nasdaq composite added 0.5%.
The Real Estate Select Sector, the Financial Select Sector and the Consumer Discretionary Select Sector rose 2.0%, 1.1% and 0.8%, respectively.
The Chicago Board Options Exchange Volatility Index is used as a fear gauge with respect to equity markets. On Tuesday, the CBOE Volatility Index declined 8.2% to $18.14.
Investors looked forward to the result of the Federal Reserve’s Oct. 31 meeting, where the outlook on further rate hikes is discussed. It was largely expected that the Fed would keep interest rates unchanged in November.
The three major indexes gained on Wednesday after the Fed’s decision to keep interest rates unchanged. The Dow increased 0.7%, the S&P 500 increased 1.1% and the Nasdaq increased 1.6%.
The Technology Select Sector, the Communication Services Select Sector and the Consumer Discretionary Select Sector gained 1.9%, 1.5% and 1.2%, respectively.
The CBOE Volatility Index decreased 7.0% to $16.87.
The Fed maintained its benchmark policy rate in the range of 5.25% to 5.50% for the second consecutive month. Members of the FOMC will closely monitor forthcoming jobs data and continue to target a 2.0% inflation rate.
By Thursday’s close, markets closed higher due to positive investor sentiment regarding a possible end to further rate hikes. The Dow added 1.7%, the S&P 500 added 1.9% and the Nasdaq added 1.8%.
The Real Estate Select Sector, the Energy Select Sector and the Consumer Discretionary Select Sector rose 3.1%, 3.0%, and 2.6%, respectively.
The CBOE Volatility Index fell 7.2% to $15.66.
Building upon the Fed’s Wednesday decision to pause rate hikes, investors remained attentive to the weekly jobless claims report. On Thursday, the Department of Labor reported that jobless claims increased 5,000 to 217,000 for the week ending Oct. 28.
Markets lost on Friday as bond yields fell due to economic data possibly pointing to a halt in interest rate hikes. The Dow increased 0.7%, the S&P 500 rose 0.9% and the Nasdaq rose 1.4%.
The three indexes rose on Monday as investors continued to remain optimistic of the end of the Fed’s interest rate hiking cycle. The Dow gained 0.1%, the S&P 500 gained 0.2% and the Nasdaq gained 0.3%.
On Monday, the benchmark 10-year Treasury note yield increased to 4.662%.
The Fed’s ultimate decision on whether to keep hiking rates will be largely attributable to the job market. Investors should track the weekly jobless claims report, which is released every Thursday.
