This week, U.S. markets saw a mix of gains and losses amid a series of earnings reports, fluctuating Treasury yields, and economic data releases.
U.S. stocks rose as investors prepared for a packed week of S&P 500 earnings reports on Monday, Oct. 28. The S&P 500 gained 0.3%, bringing its year-to-date increase to 22.8%. The Dow Jones Industrial Average advanced by 0.6%, while the Nasdaq composite rose 0.3%, achieving a 25.7% YTD gain.
Oil prices plunged by 5.1% to $68.01 per barrel, marking the commodity’s steepest daily decline in two years. On Tuesday, U.S. stocks rose as investors braced for a series of major earnings from mega-cap companies. The S&P 500 increased by 0.2%, the Nasdaq climbed 0.8%, reaching a new record high, and the Dow fell by 0.4%.
U.S. bond markets anticipated significant post-election volatility, with the 10-year Treasury yield slipping by 2.3 basis points to 4.26%. Oil prices dropped by 0.8% to $67.49 per barrel.
On Wednesday, U.S. stocks declined with the release of big tech earnings and new economic data. The S&P 500 dropped by 0.3%, the Nasdaq fell by 0.6%, and the Dow edged down by 0.2%. In the bond market, the U.K. 10-year gilt yield surged to 4.36% following the announcement of the U.K. budget.
Gold prices rose by 0.4% to $2,799.10, reaching new all-time highs. Oil prices climbed by 2.3% to $69.07 per barrel. As the U.S. elections approached, implied dollar volatility spiked to its highest level since March 2023, marking the largest one-day increase since 2017.
On Thursday, U.S. markets experienced significant declines as disappointing earnings from major tech companies weighed on investor sentiment. The S&P 500 dropped by 1.9%, ending its five-month winning streak. The Nasdaq fell sharply by 2.8%, while the Dow slipped 0.9%.
On Friday, U.S. stock indexes advanced, driven by gains in Amazon, while an unexpectedly weak jobs report reinforced expectations for another interest rate cut next week. The S&P 500 climbed 0.4%, the Dow rose 0.7%, and the Nasdaq increased by 0.8%. Treasury yields initially dipped after the jobs report but later moved higher as the market absorbed unusual data.
As economic data and the presidential election shape market sentiment, investors must remain diligent and incorporate a diversified approach.
