PARIS (Reuters) – The New York Stock Exchange opened higher on Monday at the start of the fourth quarter after the indices fell sharply in September, but the rebound was limited by Tesla, whose vehicle deliveries disappointed.
About ten minutes after the first exchanges, the Dow Jones index gained 298.9 points, or 1.04%, to 29,024.41 points and the wider Standard & Poor’s 500 rose by 0.81% to 3,614, 8 dots.
The Nasdaq Composite took 0.35%, or 36.79 points, to 10,612.418.
Wall Street’s three major indexes are rebounding as they suffered their third consecutive weekly decline last week, with the S&P 500 posting its worst September since the 2008 financial crisis, dropping nearly 9 %.
“We could see a rebound at the beginning of the quarter simply because of already low morale and because of the lows reached at the end of the last quarter,” said Jason Pride, chief investment officer at Glenmede.
“We believe that during the quarter it will become increasingly clear that we are getting closer to a recession as the Fed continues to raise interest rates. This should eventually weigh on the market again and likely to keep the market closer to, if not below, the lows it is already facing,” he added.
In this regard, the 14:00 GMT publication of the ISM manufacturing index in the United States for the month of September will be watched by investors.
The uptrend is currently led by oil stocks like Exxon Mobil and Chevron, which are up 3.83% and 4.76% respectively, with sources telling Reuters that OPEC+ is considering a production cut of more than million barrels a day at its meeting on Wednesday.
Tech giants Meta Platforms and Microsoft gained 0.98% and 1.15% respectively.
Tesla, which on Sunday reported a 4.9% drop in vehicle deliveries in the third quarter, a figure below expectations, lost 7.23%.
(Written by Claude Chendjou, edited by Kate Entringer)
Copyright © 2022 Thomson Reuters