S&P 500, Nasdaq Rise to Break 3 Day Losing Streak

Updated: Oct 26, 2021

Written by: Kealan Bane

A sigh of relief for investors as the The S&P 500 closed up +13.15(0.30%) points and the Nasdaq closed up +105.71(0.73%) points, both breaking their recent 3 day losing streak. With the good news comes bad news; The DJIA closed down less than 1 point, -0.53(less than 0.01%), which extended the DJIA losing streak into the 4th straight day.

Tech Investors and the Nasdaq

With the Nasdaq, the tech heavy index, breaking its losing streak allows for some relief for investors who are highly invested or focused on the technology sector of the market. With the rapid increase and rising concerns about inflation, tech investors are now seeing some potential safety in the tech sector. Additional contributions to the rise of the Nasdaq include the kick off of the Q3 earnings season with some big companies posting earnings reports before market open, some of which include JPMorgan Chase (JPM), which beat exceptions, yet still somehow fell, and BlackRock (BLK), which beat expectations and rose sharply.

S&P 500

The rise of the S&P 500 is partially due to the rise of the Nasdaq, the start of the earnings season, and some investors begin to partake in "insights into when the Fed might taper its asset-purchase program," says CNBC. The Fed asset-purchase program is essentially the act of buying and holding down long(er) term interest rates to increase the act of borrowing and spending money, which is aimed to stimulate the economy. Investors are looking into when the Fed will taper, or cut back, on this act. Tapering typically leads to deflation, which is generally bad, however with the rapid increase of inflation, some tapering for deflation contradicts this general ideal.

Dow Jones Industrial Average

The inflation data and concerns about inflation are likely to be held responsible for the continuation of the DJIA losing streak. This season of earnings will allow for major insight into how companies are handling and performing in the midst of the rapid price increases. Investors are said to be anxious about Q3 earnings due to this.

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