Traders work on the floor of the New York Stock Exchange on October 16, 2024.
Spencer Platt | Getty Images
the Dow Jones Industrial Average The stock price rose to a record closing high on Wednesday, rebounding from the sell-off seen in the previous session.
The main index gained 337.28 points, or 0.79%, and closed at 43,077.70 points. the Standard & Poor's 500 It added 0.47% to 5842.47, while it rose Nasdaq Composite It jumped by 0.28% to close at 18,367.08 points.
Morgan Stanley It rose 6.5% after beating Wall Street estimates for third-quarter earnings and revenue. United Airlines It also reported better-than-expected results and forecast strong numbers for the fourth quarter, sending shares up 12.4%.
The reporting period is off to a strong start. About 50 S&P 500 stocks have reported third-quarter earnings so far, with 79% of them beating expectations, FactSet data showed.
The Dow Jones and S&P 500 fell off their recent records on Tuesday, each falling more than 0.7%. The Nasdaq Composite Index lost 1%.
Despite this increased market volatility, Sam Stovall, chief investment strategist at CFRA Research, still believes stocks could rally in the short term, especially when considering September's rally to new heights.
“September election years are usually negative. However, if they are positive, it also means a positive October, compared to the more normal negative October,” he told CNBC. “In the last two months of election years, the market has rallied almost every time as all sizes, styles and sectors posted positive returns. So investors are keenly aware that momentum is behind the market.”
However, Stovall did not rule out the possibility of taking a step back from the table, given that stocks appear to be very stretched at their current valuations. But the investor said any selling would likely happen after the election and perhaps not before the new year.
“We may end up being vulnerable to some external events that could cause a jolt in stock prices,” he added.
