U.S. stocks rebounded on Monday morning after the S&P 500 and Nasdaq Composite ended their first three-quarter losing streak since the 2008 global financial crisis and the Dow Jones posted its first streak of losses since 2015.
The benchmark S&P 500 index gained 1% at the open, while the Dow Jones Industrial Average jumped 330 points, or about 1.2%. The tech-heavy Nasdaq Composite rose 0.7%.
Big moves in energy markets started the week, with oil prices rising as reports surfaced that OPEC+ was considering a major production cut of more than a billion barrels a day. West Texas Intermediate (WTI) crude oil futures jumped 5.6% to $83.99 a barrel, while Brent crude climbed about 3.9% to $88.45 a barrel .
On the corporate front, shares of Credit Suisse (CS) fell 3% at the start of trading after the CEO of the global investment bank issued a memo over the weekend attempting to calm major investors on the institution’s financial health – an effort that backfired and instead raised questions about its financial stability.
The bank said last week it was exploring potential sales of assets and certain business units as part of a strategic plan due to be unveiled at the end of the month.
Tesla (TSLA) stock also got things moving on Monday morning after the electric vehicle giant announced on Sunday that it delivered 343,830 cars in the third quarter, a new record that came even as the company was in taken with the closure of its plant in China. Still, the figure is lower than Wall Street’s expectations, which ranged from 358,000 to 371,000 vehicles. Shares fell more than 6% at the start of the session.
Investors are reeling from a brutal month and quarter that saw all three major averages enter a bear market. In September, the S&P 500 posted a 9.3% loss, its worst monthly decline since the start of the pandemic in March 2020. The Dow erased more than 8% and the Nasdaq Composite more than 10%. For the quarter, the indices lost approximately 5.3%, 4.1% and 6.7%, respectively.
As Wall Street turned the page, some strategists are looking to October, which was seen as a “bear market killer” based on historically strong returns, especially during midterm election years. Every time the S&P 500 fell 7% or more in September, stocks have done well in October, noted Ryan Detrick of the Carson Group.
A high-stakes earnings season, likely to be prompted by reduced forecasts and deteriorating fundamentals related to inflation and rising interest rates, however, makes this period different.
“The focus will be on earnings as we move from a moderation shock, with higher interest rates, to a growth shock,” Luca Paolini, chief strategist at Pictet Asset Management, told Yahoo. Finance Live in a recent interview. “That’s where we feel most worried, and the next earnings season is going to be really critical.”
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
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