Wall Street ends strong month on weaker note

STORY: U.S. stocks lost ground on Monday but closed out a blockbuster October that saw a major rebound for equities.

For the session, the Dow lost more than a third of a percent. The S&P 500 fell three quarters of a percent, while the Nasdaq dropped a full percent.

But for the month—the Dow soared nearly 14%, its biggest monthly percentage gain since January of 1976, as investors grew optimistic that Federal Reserve policy makers might soon pull back on its aggressive campaign to fight inflation.

This week-- investor focus turns to the Fed’s latest policy meeting, when it's widely expected to raise interest rates by another 75 basis points.

But investors are waiting for any signals out of the Fed's future intentions.

Russell Evans, managing principal and chief investment officer at Avitas Wealth Management, said hopes the Fed may soften its inflation stance may be wishful thinking.

"They said that there was going to be pain to come, and that was how the market reacted in late August and September. Pain to come. And they would cause whatever pain they had to cause in order to bring inflation down. Then all of a sudden, in the second half of October, the market got positive, that the Fed will maybe they're going to pivot in December, etc., etc. I don't know if I personally believe that. I think that there is serious work to be done. I think that they will take as long as they need to take. If it goes right into December, I don't have any way of knowing. But my belief is that the Fed's going to be serious about slowing down the economy right into December."

Major stock moves on Monday included Apple-- Shares lost ground after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening health restrictions in China.

Megacap growth names such as Amazon and Google-owner Alphabet which have been under pressure in the rising rate environment, also ended lower.