Traders work on the floor of the New York Stock Exchange (NYSE) on October 30, 2023 in New York City.This report is from today’s CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Like what you see? You can subscribeMonday after the S&P 500 fell into correction territory last week. The Dow Jones Industrial Index had its best day since June.
Technology stocks largely led the surge Monday. In fact, Fundstrat’s Tom Lee thinks this group of tech megacaps can push the S&P higher not just for the day, but until the end of the year. Other analysts also see a shift in the winds. “Investors are finally feeling a little bit more confident that perhaps we priced in enough bad news and that’s really manifesting in a stronger market today,” said Art Hogan, chief market strategist at B. Riley Financial.
The Federal Reserve meeting concludes Wednesday — the central bank is expected to keep interest rates unchanged — and might also give stocks a fresh tailwind. If the Fed does hold rates at the same level, Hogan thinks it “may signal that the cycle of raising rates is over,” which might “stop that parabolic rise we’ve seen in Treasury yields,” he saidfor the final quarter will likely console investors concerned about rising bond yields. headtopics.com
However, it might be too early to let your guard down. Ari Wald, head of technical analysis at Oppenheimer, wrote that the S&P’s “correction since July hasn’t run its course.” Wald thinks the broad-based index will dip to 4,050 — around 100 points lower than its Monday close — before reversing losses.
But the S&P might not even correct itself, said Morgan Stanley chief U.S. equity strategist Mike Wilson. On the contrary, Wilson — who’s one of the most bearish strategists on Wall Street, according to headtopics.com