US: Good vibes continue as Wall Street opens November

[NEW YORK] Major US stock indices climbed at the open of trading on Monday (Nov 1) as positive developments across the economy fuelled bullish sentiment.

The Dow, S&P 500 and Nasdaq had closed with new records on Friday as markets shrugged off some earnings misses by major US firms as well as data underscoring continued high inflation, instead taking heart from expectations of better days to come for the US economy.

Over the weekend, the United States and the European Union agreed to lift punitive tariffs on imported European steel and aluminium, ending a dispute that strained their crucial trade ties; in Washington, Democrats signalled they were continuing to push for votes on President Joe Biden's spending plans.

"It still seems to be a temperate, if not hot, climate for stocks in what is often a seasonally warm period," said Patrick J. O'Hare of Briefing.com. He also noted that the start of a new month "typically invites new inflows, particularly in the context of an upward-trending market."

About 20 minutes into trading, the benchmark Dow Jones Industrial Average was up 0.3 per cent at 35,924.61, while the broad-based S&P 500 edged up 0.1 per cent to 4,608.04.

The tech-rich Nasdaq Composite Index advanced 0.1 per cent to 15,520.85.

The US economy is set for major news this week, including the Federal Reserve's two-day meeting which is expected to conclude with an announcement on Wednesday that the central bank will begin pulling back on its pandemic monetary stimulus.

Payroll services firm ADP will release private hiring data for October on Wednesday, while the government will release the all-important employment data on Friday with an update of the unemployment rate and the number of jobs added last month.

The report is expected to show improved hiring after the Delta wave of Covid-19 hammered the labour market in recent months.

AFP