CNBC Daily Open: A history-making three months for stocks

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The last day of October was sweet for markets, but it was more trick than treat for the rest of the month.

for the first time in 16 years. On a monthly basis, the S&P fell 2.2%, the Dow 1.4% and the Nasdaq 2.8%. All three indexes declined for three consecutive months — the first time for the S&P and Dow since March 2020.

In fact, this is just the ninth time since 1928 the S&P has fallen consecutively from August to October,. But history presents a silver lining: The last two times the S&P fell during those months, it rallied 3.42% and 5.99% in the following November, the group said. The Federal Reserve's decision on interest rates, expected Wednesday, might give stocks another boost."If the Fed comes out and says they're probably done for the year, gives hints that they're feeling more dovish, that could be one thing that really helps," said Ross Mayfield, investment strategy analyst at Baird.

And stocks certainly do need help. Even the Magnificent Seven stocks that led most — if not all — the gains in the S&P this year have been struggling in October.

 

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