Stock Market Recap: Tuesday, October 22, 2024
On Tuesday, US stocks took a step back as investors processed the recent bond-market volatility and prepared for upcoming earnings reports. The S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all saw declines, with the S&P 500 dropping more than 0.5%, the Dow Jones slipping more than 120 points, and the Nasdaq falling roughly 0.6%.
One of the factors creating pressure on stocks is uncertainty surrounding the Federal Reserve’s future rate decisions. There is speculation that the Fed may not continue cutting rates aggressively or may even maintain current rates in November. Additionally, the strength of the economy, cautious remarks from Fed officials, and concerns about the potential fiscal impact of a Donald Trump election win are all contributing to the unease in the market.
Meanwhile, the 10-year Treasury yield stabilized around 4.2% after significant gains on Monday pushed it above that level for the first time since July. The selling in the bond market has affected rate-sensitive stocks like those in the real estate sector, as rising yields can trigger stock sell-offs.
In terms of earnings, General Motors made headlines by raising its profit forecast for the third time this year after reporting strong results driven by increased sales of electric vehicles. GM shares surged more than 5% following the news. On the flip side, GE Aerospace and Verizon both saw their stocks decline over 5% on mixed third-quarter reports.
Looking ahead, investors are eagerly anticipating Tesla’s earnings report on Wednesday, with some analysts debating whether tech megacap stocks, known as the “Magnificent Seven,” will lead the next leg of the stock market rally.
Despite the rise in Treasury yields, gold prices climbed, potentially on track to surpass Monday’s record high. Investors seem to be seeking safety in the precious metal ahead of the US presidential election and in the midst of escalating tensions in the Middle East.
In other news, companies like GE Aerospace, Verizon, 3M, and Philip Morris reported their third-quarter earnings with mixed results, impacting their stock prices in premarket trading. Philip Morris stood out by raising its guidance thanks to higher cigarette prices and the growth of its smoke-free business.
As we move forward into the final quarter of the year, it’s essential for investors to stay informed about the latest market developments and earnings reports to make well-informed investment decisions.
Stay tuned for more updates and analysis on market trends and opportunities from Extreme Investor Network.