Wall Street Closes With Sharp Gains To Start Q4

Wall Street's three major indexes rallied to close over 2% on Monday, Oct. 3, 2022, as US Treasury yields tumbled on weaker-than-expected manufacturing data, increasing the appeal of stocks at the start of the year's final quarter, Echo Wang reported for Reuters.

Photo Insert: The US stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation and concerns about a slowing economy.

The US stock market has suffered three quarterly declines in a row in a tumultuous year marked by interest rate hikes to tame historically high inflation and concerns about a slowing economy.

"The US yield markets (are) pulling back - that's been a positive ... and that connotes a more risk-on environment," said Art Hogan, chief market strategist at B. Riley Wealth in Boston.

The Dow Jones Industrial Average rose 765.38 points, or 2.66%, to 29,490.89; the S&P 500 gained 92.81 points, or 2.59%at 3,678.43 and the Nasdaq Composite added 239.82 points, or 2.27%, at 10,815.44.

Volume on US exchanges was 11.61 billion shares, compared with the 11.54 billion average for the full session over the last 20 trading days.

Tesla fell 8.6% after it sold fewer-than-expected vehicles in the third quarter as deliveries lagged way behind production due to logistic hurdles. Peers Lucid Group gained 0.9% and Rivian Automotive fell 3.1%.

Further supporting rate-sensitive growth stocks, the benchmark US 10-year Treasury yield fell after British Prime Minister Liz Truss was forced to reverse course on a tax cut for the highest rate. All 11 major S&P 500 sectors advanced to positive territory, with energy being the biggest gainer.

Oil majors Exxon Mobil Corp. and Chevron Corp. rose more than 5%, tracking a jump in crude prices as sources said the Organization of the Petroleum Exporting Countries and its allies are considering their biggest output cut since the start of the COVID-19 pandemic.

Megacap growth and technology companies such as Apple Inc. and Microsoft Corp. rose over 3% respectively, while banks advanced 3%.

Data showed manufacturing activity increased at its slowest pace in nearly 2-1/2 years in September as new orders contracted, likely as rising interest rates to tame inflation cooled demand for goods.

The Institute for Supply Management said its manufacturing PMI dropped to 50.9 this month, missing estimates but still above 50, indicating growth.

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