Stock Market Update October 2023: US Markets Mixed Amid Shutdown Avoidance and Rate Hike Concerns
Explore the latest market movements in October 2023 as US equities show mixed results following a government shutdown avoidance, with bond yields rising due to ongoing Federal Reserve rate hike worries.
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Highlights to Know
- On October 2, 2023, US stock markets opened October with mixed results after Congress averted a government shutdown, yet bond yields climbed amid persistent fears of additional Federal Reserve interest rate increases.
- Shares of Discover Financial Services surged following the company's announcement of a consent agreement with the FDIC regarding credit card account classifications.
- Gold prices declined sharply, causing shares of Newmont Corporation and other gold mining companies to drop.
As the new month began, US equities showed a mixed midday performance with the S&P 500 and Dow Jones Industrial Average retreating, while the Nasdaq Composite edged higher. This came after a last-minute legislative deal prevented a government shutdown, but concerns about further Fed rate hikes pushed bond yields upward.
Discover Financial Services (DFS) experienced a notable jump in stock price after confirming a consent agreement with the Federal Deposit Insurance Corporation addressing prior misclassification of certain credit card accounts.
Insulet Corporation (PODD) shares rose following an upgrade by Jefferies, which indicated that growing demand for Insulet’s diabetes-related weight loss drugs would not negatively impact insulin pump sales. Nvidia (NVDA) also gained momentum after Goldman Sachs added the stock to its “conviction buy” list, highlighting increased demand for artificial intelligence (AI) semiconductor chips.
Kellogg Company (K) shares declined as the well-known cereal and snack manufacturer officially split into two independent entities. Similarly, Danaher Corporation (DHR) shares fell after completing the spin-off of its environmental and applied solutions division into Veralto Corporation (VLTO).
Shares of Newmont Corporation (NEM) dropped amid a significant fall in gold prices to levels not seen since November of the previous year. Other gold mining stocks also faced downward pressure.
In commodities, oil futures slipped below $90 per barrel. The US dollar strengthened against major currencies including the euro, British pound, and Japanese yen. Meanwhile, most leading cryptocurrencies traded higher.
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