It has been a volatile few weeks for the stock market, but Thursday closed on a high, signaling a hopeful change for investors.
At the closing bell on Thursday’s trading day, the Dow closed up 401 points for a 1.6 percent gain. The big winner of the day was the Nasdaq, surging ahead three percent, marking its biggest gain since last March. The S&P 500 also posted gains, closing up nearly two percent for the trading day. The Thursday bounceback was a response to Wednesday’s big drops, on the heels of news of suspicious packages containing pipe bombs sent to a number of leaders in the Democratic party.
Heading into the week, financial analysts had been looking to a series of third-quarter earnings reports to help pull the stocks out of their current roller coaster of swings. However, the news had not been as good as expected and investors began to worry. The dismal corporate earnings reports have been reflected in an average of a two percent drop across the board the day following the reports this quarter.
A series of events have led to the October swings. Growing trade concerns with China partnered with the anticipation of rising interest rates by the end of the year have led to an overall skittish sentiment among investors. Since the beginning of the trading month, the Nasdaq has plummeted an astonishing nine percent, marking its worst month since November of 2008. Also in October, the S&P 500 is down seven percent.
However, a bit of a surge on Thursday gives investors confidence that many stocks had been oversold and will begin to rebound heading into the last quarter of the year. Tech stocks led Thursday’s big swing, with Amazon (AMZN) leading the pack with a gain of seven percent. Twitter (TWTR) posted gains of 16 percent with Tesla (TSLA) coming in at a gain of nine percent.