As we move into the fourth quarter, markets showed signs of optimism last week even if volatility is still high. The major U.S. market indices began and completed the week with large daily gains, bouncing back from the primarily negative outcomes of the previous week. Investor attention was directed toward quarterly results and potential future interest rate hikes, and this resulted in weekly gains of almost 5% for the S&P 500, the NASDAQ, and the Dow.
Strong earnings reports, with several corporations reporting revenues and profitability above analyst projections, were the primary factor in the upbeat mood. About 20% of S&P 500 businesses have released their third-quarter profits, and above the industry average of 70%, 73% of those reports have surpassed earnings expectations. So far, a recurring theme has been the resilience of US consumers in the face of impending economic challenges. Even though Q3 earnings were strong, it's vital to keep in mind that increased interest rates frequently have a lag effect on the real economy, with investors expecting that earnings would continue to soften in the quarters ahead.
The S&P 500 closed the week strongly with 3.14%, however still being down 21.46% year-to-date. ONE-SIGNAL is -continuing strong and posted gains of 62.70% and 40.47% year-to-date.