Dow Jones, S&P 500, and Nasdaq Close Higher Today October 20
The Dow Jones Industrial Average jumped 515.97 points, or 1.12%, to close at 46,706.58, reported CNBC. The S&P 500 gained 1.07% to finish at 6,735.13, while the Nasdaq Composite rose 1.37% to settle at 22,990.54, as per the report.
Apple Stock Soars Today After Upgrade
Apple was the standout performer of the session, rising nearly 4% to a record close after Loop Capital upgraded the stock from “hold” to “buy”, as per the CNBC report. The firm cited improving iPhone demand and said the company is entering at the front end of AAPL’s long-anticipated adoption cycle that suggests ongoing iPhone shipment expansion through CY2027,” as quoted in the report.
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Optimism Grows for End of Government Shutdown
Adding to the positive sentiment, hopes grew that the 20-day government shutdown could end this week, according to the report. National Economic Council Director Kevin Hassett told CNBC’s Squawk Box that he believes “moderate Democrats” may soon help reach a deal and also said the White House is prepared to take stronger action if no agreement is reached, as reported by CNBC.
Wall Street Recovers After Volatile Week
The upbeat tone follows a turbulent week on Wall Street, where markets rebounded despite renewed US-China trade tensions, concerns over regional bank loan losses, and a brief sell-off in some high-flying artificial intelligence stocks, as per the report.ALSO READ: How much should you really save to retire comfortably? The answer might surprise you
Earnings Season Fuels Investor Confidence
Strong early results from corporate earnings helped ease investor nerves, along with expectations of another quarter-point rate cut from the Federal Reserve at its upcoming late October meeting, as per the CNBC report.
So far this earnings season, 76% of the 58 S&P 500 companies that have reported have beaten profit expectations, surpassing the typical first-week average of 68%, as per Bank of America’s data.
Big Earnings Ahead: Netflix, Coca-Cola, Tesla, Intel
This week, several major names including Netflix, Coca-Cola, Tesla, and Intel are scheduled to report quarterly results and investors are hoping strong earnings will help offset broader economic concerns, as per the CNBC report.
Regional Bank Stocks Bounce Back
Regional bank stocks also recovered on Monday after last week’s sell-off triggered by loan loss disclosures at Zions Bancorporation and Western Alliance, as per the report. Both banks saw their shares climb about 4% ahead of earnings, easing some of the recent credit worries that had rattled the financial sector.
Analysts See Markets Shifting Focus
Jamie Cox, managing partner at Harris Financial Group, said that, “Markets are exiting the funk of the ongoing tariff drama with China and the shutdown standoff, and are now more focused on monetary policy and earnings, both of which are far more positive and consequential,” adding, “Markets are broadening out and investors would be wise to take advantage of it while it lasts,” as quoted by CNBC.
US-China Trade Relations Show Signs of Improvement
Meanwhile, trade relations with China appeared to show signs of improvement. The three major indexes also rose modestly on Friday after US president Donald Trump expressed optimism and he said on Monday that he expects a “fair” deal with the country, as per the report.
Treasury Secretary Scott Bessent echoed a similar tone on Friday, saying he believes “things have de-escalated” with China and that he plans to meet soon with Chinese Vice Premier He Lifeng, as per the CNBC report. His comments suggested that Trump’s threat of an additional 100% tariff on Chinese imports set for November 1 might not materialize, according to the report.
FAQs
Why did US stocks rise on Monday?
Stocks climbed as Apple shares surged and optimism grew about an end to the government shutdown.
How much did Apple stock go up today?
Apple shares rose nearly 4% to a record close after an upgrade from Loop Capital.