U.S. stocks closed out October on a three-month losing streak, the first time that has happened since the beginning of 2020.
The blue-chip Dow Jones Industrial Average ended October down 454.63 points, or 1.4%. The benchmark S&P 500 index fell 94.25 points, or 2.2%, in October, and the technology-laden Nasdaq Composite index declined 368.08 points, or 2.8%, for the month.
All three indices have now declined for three consecutive months, the longest such losing streak since the onset of the Covid-19 pandemic.
Markets are awaiting the latest interest rate decision from the U.S. Federal Reserve later today (Nov. 1) and the October labour market report on Nov. 3.
Investor sentiment could also be impacted by a highly anticipated third-quarter financial report from technology giant Apple (AAPL) on Nov. 2.
Stocks also continue to be pressured by rising bond yields, with the benchmark 10-year Treasury yield continuing to hover near 5%.
However, investor confidence could improve if the U.S. Federal Reserve leaves its trendsetting interest rate unchanged at the current range of 5.25% to 5.50%, as is widely expected.
Signals from the U.S. central bank that it is starting to see the economy slow and that interest rates may have peaked could also help stocks heading into November.
Newly released data showed that U.S. consumer confidence is currently at a five-month low due to high interest rates, inflation concerns, and uncertainty about the Israel-Hamas war.
A strong Q3 print from Apple could also send equities higher as the consumer electronics company is one of the most widely owned stocks in the world.
