U.S. stock indexes concluded trading on Tuesday with mixed results as investors reassessed their expectations for interest rate cuts for the remainder of the year.
The S&P 500 and the Dow Jones Industrial Average experienced slight declines, while the Nasdaq composite saw a modest gain.
The S&P 500 continued to reflect losses from Monday, retreating further from recent record highs. Investor sentiment was influenced by comments from several Federal Reserve officials, which suggested a modest approach to rate cuts, prompting a recalibration of expectations for swift and significant reductions. This shift in outlook contributed to a sell-off in the bond market on Monday, leading to a rise in the 10-year Treasury yield, which increased by 11 basis points to approximately 4.2% on Tuesday. This marks the highest level for the key bond yield in three months.
Despite these fluctuations, market participants remain optimistic about future rate cuts. According to the CME FedWatch Tool, there is an 89.6% probability of a quarter-point interest rate cut in the upcoming month.
Earnings season has been predominantly positive, with nearly one-fifth of S&P 500 companies reporting third-quarter results. Approximately 80% of these companies have exceeded profit expectations by 5%, as noted by Bank of America. General Motors saw a notable increase, rising over 10% on Tuesday after surpassing forecasts. Upcoming earnings reports include Tesla and Boeing on Wednesday and UPS on Thursday.
As of the market close at 4:00 p.m. ET on Tuesday, the key U.S. indexes were as follows:
S&P 500: 5,851.20, down 0.05%
Dow Jones Industrial Average: 42,924.89, down 0.02% (-6.72 points)
Nasdaq Composite: 18,573.13, up 0.18%
Additional highlights from the day include:
- A significant player on Polymarket is reportedly placing up to 71 bets per minute favoring Donald Trump.
- The UK is utilizing Russia’s frozen assets to facilitate a $3 billion loan to Ukraine.
- Renowned investor Paul Tudor Jones has announced that he is holding gold and bitcoin as hedges against potential inflation risks following the upcoming elections.
- A new study suggests that “flexible co-living” could help reduce the costs of converting office spaces into residential units while increasing housing supply.
In commodities, bonds, and cryptocurrency:
- West Texas Intermediate crude oil rose by 2.38% to $72.24 per barrel, while Brent crude, the international benchmark, increased by 2.23% to $75.94 per barrel.
- Gold prices climbed by 0.80% to $2,760.90 per ounce.
- The 10-year Treasury yield increased by one basis point to 4.2%.
- Bitcoin experienced a slight decline, shedding 0.17% to $67,533.29.
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