U.S. Equity Update - Domestic Stock Market

  December 3, 2015

Equity markets in October recouped some of the losses suffered in August and September as major indices rose for the month. The technology sector helped buoy the equity markets as profitability for technology companies surged.

The recent market volatility is seen by analysts as providing an optimal entry point for investors to add quality positions or to build upon pre-existing positions. Part of the performance for equity markets in October was a result of short sellers that were forced to cover positions, as the anticipation of higher rates was dismissed and better than expected earnings for various sectors were reported.

The Dow Jones Industrial Average and the S&P 500 indices recaptured a portion of their losses from August and September as company earnings and forecasts offered optimistic expectations. The Dow was up 8.47% in October and the S&P 500 added 8.30%, the best October performance since 2011. The technology-heavy Nasdaq Index reached record levels in October not seen since 2000. The index was up over 9% for the month, outpacing larger capitalized indices such as the Dow Jones Industrial and the S&P 500. Favorable earnings reports and growth estimates for technology companies helped propel the index to these levels.

 

Sources: Reuters, Bloomberg, S&P

Get In Touch

   952.562.2440 | Toll Free 877.344.2440
  952.562.2457