The Dow Jones Industrial Average (DJIA) caught a bullish tailwind on Monday, rising around 550 points to kick off the new trading week. Apple (AAPL) shares rose strongly, leading the charge into the high end as the tech rally gives fresh signs of life, and investors are hoping that rumors of a potential end of the US federal government shutdown will result in an end to the federal closure.
Apple shares rallied on Monday, dragging the rest of the tech-dependent bull market along with it. Analysts from Loop Capital raised Apple’s stock outlook from ‘hold’ to a ‘buy’, prompting loose market cash to pile into the iPhone maker.
Shutdown drags on, but hope for a near-term solution exists
The US federal government shutdown has entered its twentieth day and shows no signs of coming to a quick end. However, according to key White House officials, there may be a chance to pass a near-term funding agreement while the federal government works out a more meaningful budget resolution. The US government failed to reach an agreement on a funding bill at the start of the US government’s fiscal year on October 20, and House Republicans sent Congress into recess for this week after two weeks of little movement on budget proposals.
Q3 earnings season is in full swing, and the overwhelming majority of companies have beat analyst expectations heading into the fourth quarter. 76% of S&P-listed companies have beat forecasts on third quarter earnings, bolstering the general market’s upward momentum.
Dow Jones daily chart
Economic Indicator
Consumer Price Index (YoY)
Inflationary or deflationary tendencies are measured by periodically summing the prices of a basket of representative goods and services and presenting the data as The Consumer Price Index (CPI). CPI data is compiled on a monthly basis and released by the US Department of Labor Statistics. The YoY reading compares the prices of goods in the reference month to the same month a year earlier.The CPI is a key indicator to measure inflation and changes in purchasing trends. Generally speaking, a high reading is seen as bullish for the US Dollar (USD), while a low reading is seen as bearish.
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