U.S. equity markets remained volatile on Oct. 15, with the blue-chip Dow Jones Industrial Average erasing a 400-point gain early in the day to finish trading down 30 points or 0.07%.
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The benchmark S&P 500 index managed to eke out a small gain on the day of 27 points or 0.42%. The technology-laden Nasdaq index fared better, rising 148 points or 0.66%. Analysts said that U.S. stocks were given a boost by strong third-quarter financial results from major banks such as Morgan Stanley (MS) and Bank of America (BAC).
However, markets overall remain volatile as investors continue to fixate on U.S.-China trade relations and a government shutdown that is now costing the American economy as much as $15 billion per day. The Cboe Volatility Index (VIX), popularly known as Wall Street’s “fear gauge,” hit 20.7 on Oct. 15 and remains at its highest level since May of this year.
Tech Stocks
While the Nasdaq index was up on the day, many high-flying artificial intelligence (AI) stocks continue to struggle. Shares of Nvidia (NVDA) closed 0.01% lower after rising as much as 2.7% earlier in the trading session. NVDA stock has now declined 6% in the past five days.
Analysts say that investors remain on edge as global trade tensions escalate, particularly between China and the U.S. The government shutdown and lack of economic data coming out of Washington, D.C. also has investors on edge and seeking safe-haven assets. The price of gold hit another record high on Oct. 15, rising above $4,200 per ounce for the first time.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) currently has a Moderate Buy rating among 504 Wall Street analysts. That rating is based on 417 Buy, 79 Hold, and eight Sell recommendations issued in the last three months. The average SPY price target of $747.93 implies 11.68% upside from current levels.
