Instant view: Wall Street rallies sharply, market seeks bottoming signs
2022.10.17 10:34
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© Reuters. FILE PHOTO: Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar
NEW YORK (Reuters) – Wall Street’s main stock indexes rallied as much as 3% early Monday, catalyzed by better than expected earnings from Bank of America (NYSE:), while traders debated whether recent wild swings signaled some sort of bottom was forming after new bear market lows were reached last week.
MARKET REACTION: STOCKS: The Dow was up 1.69%, the was up 2.53% and the Nasdaq up 3.22%
COMMENTS:
SIDDHARTH SINGHAI, CHIEF INVESTMENT OFFICER, IRONHOLD CAPITAL, NEW YORK
“This seems to be a faux rally fueled by lower inflation expectations, I don’t think the rally makes sense. Interest rate hikes are not getting discounted by the market.”
THOMAS HAYES, MANAGING MEMBER, GREAT HILL CAPITAL, IN NEW YORK
“It is offsides positioning.”
“Last week retail traders bought $19.9B of puts. 3:1 ratio to calls. Most extreme ever. Closest periods were all near major lows 2020, 2016, 2009, 2003. Everyone bought insurance after the house burned down. Those type of policies never pay out. There are no sellers left.”
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