Wall Street closes with sharp gains as the final quarter begins

Oct 3 (Reuters) – Wall Street’s three major indexes closed up more than 2% on Monday as U.S. Treasuries fell on weaker-than-expected manufacturing data, adding to the appeal of stocks at the start of the year’s final quarter.

The U.S. stock market has suffered three quarters of declines in a turbulent year marked by interest rate hikes to control historically high inflation and worries about a slowing economy.

“US yield markets are pulling back — that’s a positive … and it’s indicative of a more risk-averse environment,” said B. said Art Hogan, chief market strategist at Relay Wealth.

Rate sensitivity further supported growth stocks, with US 10-year Treasury yields falling after British Prime Minister Liz Truss reversed course on tax cuts to a much higher rate.

All 11 major S&P 500 (.SPX) Sectors moved strongly into positive territory (.SPNY) Being a huge gain.

Oil giant ExxonMobil Corp (XOM.N) And Chevron Corp rose more than 5%, tracking a rise in crude prices as the Organization of the Petroleum Exporting Countries and its allies consider their biggest production cuts since the start of the Covid-19 pandemic, sources said.

Megacap growth and technology companies like Apple Inc (AAPL.O) and Microsoft Corp (MSFT.O) Banks <.SPXBK> While it advanced 3%, it rose more than 3% respectively.

Data showed manufacturing activity picked up at its slowest pace in September as new orders shrank, as interest rates to curb inflation dampened demand for goods. read more

The Institute for Supply Management said its manufacturing PMI fell to 50.9 this month, missing estimates but still above 50, indicating growth.

“The economic data stream actually came in worse than expected. In a very pessimistic fashion this could be good news for the stock markets,” Hogan said.

“(While) good economic data, strong metrics were a catalyst for selling, this is the first time we’ve really seen some negative news being a catalyst.”

All three major indexes edged lower on Friday in a volatile third quarter on growing fears that the Federal Reserve’s aggressive monetary policy could push the economy into recession.

Dow Jones Industrial Average (.DJI) up 765.38 points or 2.66% to 29,490.89; S&P 500 (.SPX) 3,678.43 up by 92.81 points or 2.59%; and the Nasdaq Composite (.IXIC) It added 239.82 points, or 2.27%, to 10,815.44.

Volume in US equities was 11.61 billion shares compared to the full session’s average of 11.54 billion over the last 20 trading days.

Tesla Inc (TSLA.O) It fell 8.6% after selling fewer-than-expected vehicles in the third quarter as deliveries lagged behind production due to logistical constraints. Pierce Lucid Group (LCID.O) 0.9% and received by Rivian Automotive (RIVN.O) fell 3.1%. read more

Major automakers are expected to report modest declines in U.S. new vehicle sales, but analysts and investors worry that a bleak economic picture, not inventory shortages, will lead to weaker car sales. read more

Citigroup and Credit Suisse became the latest brokerages to cut their 2022 year-end targets for the S&P 500, as U.S. stock markets take the heat from aggressive central bank action to reduce inflation. read more

Credit Suisse set a 2023 year-end price target for the benchmark index at 4,050 points and said 2023 will be “a year of weak, non-slow growth and subdued inflation”.

Advancing issues outnumber decliners on the NYSE by a 5.04-to-1 ratio; On the Nasdaq, a 2.70-to-1 ratio favored the advancers.

The S&P 500 posted a new 52-week high and a new 23-week low; The Nasdaq Composite posted 58 new highs and 282 new lows.

Echo Wang reports in New York; Additional reporting by Angika Biswas and Bansari Mayur Kamdar in Bangalore; Cinematography by Anil de Silva, Arun Koyur and Richard Chang

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