The US stock market data for October showed a mixed picture of the performance of the major indices and sectors. While some sectors such as technology and health care posted strong gains, others such as energy and industrials suffered losses. The Dow Jones Industrial Average, the Nasdaq Composite and the S&P 500 all ended the month with positive returns, but with different degrees of volatility.
Dow Jones: A Modest Rise Amid Challenges
The Dow Jones Industrial Average (DJIA) rose by 0.23% in October, adding 76.05 points to close at 33,005.01 on the last trading day of the month. The index, which tracks 30 large-cap US companies, faced some challenges during the month, such as the supply chain disruptions, labor shortages, inflation pressures and the debt ceiling impasse. However, the index also benefited from some positive factors, such as the strong earnings reports from some of its components, the progress on the infrastructure bill and the easing of the Covid-19 delta variant cases.
Some of the best performers in the DJIA in October were 3M, Boeing and Honeywell International, which gained 2.20%, 2.18% and 2.18% respectively. On the other hand, some of the worst performers were Caterpillar, Amgen and Chevron, which lost 6.37%, 4.16% and 0.84% respectively.
Nasdaq: A Robust Recovery After a Slump
The Nasdaq Composite, which tracks more than 3,000 US and global companies, mostly in the technology sector, surged by 1.16% in October, adding 146.47 points to end at 12,789.48. The index, which had a rough start to the month, losing more than 5% in the first week, staged a robust recovery in the second half of the month, reaching a new all-time high on October 29. The index was boosted by the strong performance of some of its heavyweight components, such as Apple, Microsoft and Amazon, which reported better-than-expected earnings and revenues. The index also benefited from the positive sentiment in the tech sector, as investors shrugged off the regulatory and legal challenges faced by some of the companies, such as Facebook, Google and Tesla.
Some of the top gainers in the Nasdaq in October were ICICI Prudential NASDAQ 100 Index Fund, Edelweiss US Technology Equity FOF and Aditya Birla Sun Life NASDAQ 100 FOF, which soared by 25.25%, 25.69% and 25.76% respectively. On the flip side, some of the top losers were Edelweiss US Value Equity Offshore Fund, Bandhan US Equity Fund of Fund and Motilal Oswal Nasdaq 100 ETF, which plunged by 2.07%, 13.76% and 29.09% respectively.
S&P 500: A Record-Breaking Month Amid Optimism
The S&P 500, which tracks 500 large-cap US companies across various sectors, jumped by 1.20% in October, adding 49.45 points to finish at 4,166.82. The index, which had a volatile month, hitting a two-month low on October 4, rebounded strongly in the following weeks, breaking new records on October 27 and 29. The index was driven by the optimism in the market, as investors welcomed the positive earnings season, the resolution of the debt ceiling issue, the advancement of the social spending bill and the nomination of Jerome Powell for a second term as the Federal Reserve chair.
Some of the best sectors in the S&P 500 in October were health care, technology and consumer discretionary, which rose by 4.86%, 4.66% and 4.10% respectively. Some of the worst sectors were energy, industrials and materials, which fell by 3.77%, 2.28% and 1.88% respectively.
