US stocks extend the recent positive momentum, start new month on a high note

Major US equity indices kicked off a new month on a slightly positive note and attempted to build on the recent recovery trend.  

Strong company results prompted some bargain hunting of beaten-down technology stocks and contributed to a continuous improvement in investors’ sentiment after a brutal selloff in October.

October was a rough month for global equities, with the S&P 500 recording its worst month in seven years amid concerns over rising interest rates, global trade conflict and some disappointing earnings results.

The early uptick, however, lacked any strong follow-through as investors look forward to quarterly results from Apple, the world’s largest publicly traded company by market value, which might provide a more lasting impetus for the markets.

Apart from corporate earnings, the upcoming midterm elections in the US, on Nov. 6, will also play an important role in determining the next leg of a directional move for the markets.  

On the economic data front, the US ISM manufacturing PMI dropped to a six-month low level of 57.7 in October and did little to provide any meaningful bullish impetus.

During the opening hour of trade, the Dow Jones Industrial Average rallied nearly 150-points to 25,265 and the broader S&P 500 Index added over 12-points to 2,725.  

Meanwhile, tech-heavy Nasdaq Composite Index reversed an early dip and was last seen trading with modest gains, up by around 28-points to 7,335.