S&P 500

Market review for October 25, 2022

The US market edged higher.

Major US indices rose at the opening of the week: the Dow Jones added 1.3%, the S&P 500 rose by 1.2%.

S&P 500: 3,797. Trading range: 3,750 - 3,850.

Monday's macroeconomic calendar was bereft of important news releases. According to IHS Markit reports, the measures of manufacturing and services industry activity turned out to be below the 50 reading and below forecasts. This indicates a decline in activity. The service sector suffered the most, the index dropped to 46.6.

Yesterday, the yield on the 10-year Treasury note rose to 4.3% but then returned to 4.2%.

Nine out of eleven market sectors advanced yesterday. Medical companies were among the leaders, while commodity companies turned out to be the worst performers. Chinese stocks declined amid Xi Jinping's power consolidation.

Rishi Sunak will become Britain's next prime minister.

Tuesday's pre-market reports: General Motors (GM), Valero Energy (VLO), Centene (CNC), UPS (UPS), Sherwin-Williams (SHW), PulteGroup (PHM), Haliburton (HAL), General Electric (GE) , Raytheon Technologies (RTX) , Biogen (BIIB), Coca-Cola (KO), and 3M (MMM).

As for today's important statistics, traders may take notice of the consumer confidence index for October, which is expected to decline to 105 from 108.

Since the beginning of the year, the Dow Jones Industrial Index has slid by 13%, the S&P 500 has dropped by 20%, the NASDAQ Composite has collapsed by 30%.

China's yuan sank to 2008 lows against the US dollar. The dollar index is stable. It is trading at around 112.

On the contrary, the euro is gradually gaining value as it is being supported by the ECB's upcoming interest rate hike. According to forecasts, the regulator will raise its key rate by 75 basis points on Thursday.

Energy market: Brent crude oil rose by about $1 to 93.30.

Natural gas prices in Europe fell below $1,000 to $985 per thousand cubic meters.

In general, the market situation is quite calm. US stocks are likely to edge higher, but they are still under strong pressure from expectations of Fed's rate hikes. Market participants are waiting for important news to be released at the end of the week.