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US stock market kickstarted November with record gains. Tesla continued to rally to new all-time highs surging past $1200 levels on Monday.
The US stock market started the penultimate month of 2021 with new record highs and strong investor optimism. On Monday, November 1, Dow Jones (INDEXDJX: .DJI) and the S&P 500 (INDEXSP: .INX) touched ATH levels.
The Dow Jones surged 94 points or 0.26% closing at 35,913.84 levels. Similarly, the S&P 500 also surged nearly 0.2% to 4,613.67 while closing at its new all-time high. Interestingly, the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) also gave a record closing at 15,595 levels.
Tesla Inc (NASDAQ: TSLA) which attained the trillion-dollar milestone last week rallied a staggering 8.5% on Monday. The TSLA stock closed at 1208 and has gained nearly 50% year-to-date. The automobile giant suspended BTC payments earlier this year in May. However, it is reconsidering the option to introduce Bitcoin payments once again.
Energy stocks have been rallying on the backdrop of rising crude prices. On Monday, Occidental Petroleum gained 3.8%. Earlier on Sunday, Saudi Aramco also reported a 160% surge in its net income during the third quarter owing to strong demand and economic reopening. In a note to clients, Fundstrat’s Tom Lee wrote:
“In our view, the key story arc driving equities is the strengthening global recovery. COVID-19 trends are improving, but with vaccinations and boosters, the improvement in health care risk could materially accelerate in 2022.”
Besides, the small-cap benchmark Russell 2000 also registered its best day since August 27 gaining 2.6%.
Market Momentum Continues with New Record Levels
The stock market has pulled back strongly over the last month after a tepid September performance. After dropping 4% in September, the benchmark indices have gained more than 7% over the last month.
During the last month of October, the Dow Jones gained more than 5.8%. Similarly, the S&P 500 gained 6.9% during the same time. The tech-heavy Nasdaq Composite was the biggest gainer among all-three top indices adding nearly 7.3% in October.
The power-packed performance in the market comes on the backdrop of a strong earnings season. Despite the global supply chain concerns, some of the top businesses managed to deliver record profits in the last quarter. Nearly half of the S&P 500 companies reported their quarterly results last month. Of these, a staggering 80% of them managed to beat Wall Street estimates.
Now, investors will have a close watch at the two-day Federal Reserve meeting scheduled on Tuesday-Wednesday. The US central bank is most likely to unwind its $120 billion monthly bond purchase plan. Bleakley Advisory Group CIO Peter Boockvar told CNBC:
“The Fed is part of a global move to remove accommodation, and the market drives right past that. In a way, the stock market is playing a game of chicken, with this inflation move and interest rates and the response from central banks.”
The employment data also shows that there’s some improvement in the hiring process.