It was updated on Oct 3, 2022.
The stock market rallied Monday as investors backed off their most dire recession fears, and the market is on track for its best day in six months.
There is hope that a strong fourth quarter can help correct the market's poor performance.
The S&P 500 gained 1.9% and the tech-laden Nasdaq was up 1.4%.
After all three indices posted their worst September in more than a decade and the S&P declined for the first time since 2009, the rally came after the fact.
On average, the S&P has risen 4.8% over the last three months of the year, and this is due to the more positive sentiment in the fourth quarter.
Mark Hackett, Nationwide's head of investment research said Monday that growth concerns and stress in the market began to outweigh inflation worries, as investors responded positively to the Federal Reserve moving to a dovish stance on interest rate hikes over the weekend.
The 10-year US treasury yield fell 17 basis points to 3.6% and the 10-year British gilt yield fell 19 basis points after the British government backed off its most aggressive financial policy changes.
Among the biggest risers Monday were energy stocks Exxon, Shell and Chevron, each rising more than 4%, as crude oil prices spiked following reports that the Organization of the Petroleum Exporting Countries is considering massive production cuts.
It would take a dramatic recovery to reverse a brutal year for the stock market, which is down more than 20% year to date and is on pace for its worst year since 2008. The stock market rose between June and August and then fell back to its previous lows in September.
Lehman Brothers went bankrupt in the 2008 financial crisis as a result of concerns about Swiss bank Credit Suisse. Andrew Coombs wrote in a Monday note that he was wary of drawing parallels with banks in 2008.
The stock market has a remarkable history in the fourth quarter.
The economic outlook is gloomy as experts worry that the Fed could break markets.
The stock market has been in a bear market for 20 years.
Credit Suisse shares are tanking due to capital concerns.
The Quarterly EV Deliveries Jump 42%.
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