Market Momentum Slows as Earnings Season Heats Up
The stock market experienced a mixed bag on Monday, with the S&P 500 dropping almost 0.2% and the Dow Jones Industrial Average losing over 300 points. Meanwhile, the tech-heavy Nasdaq Composite managed to eke out a 0.2% gain.
Treasury Yields Rise to Highest Level Since July
The 10-year Treasury yield climbed 10 basis points to 4.18%, its highest level since July. This increase had a ripple effect on interest rate-sensitive stocks, such as those in the Real Estate sector, which took a hit during the session.
Earnings Season Takes Center Stage
This week, over 100 S&P 500 companies are set to report their quarterly earnings, including big names like Tesla, General Motors, Coca-Cola, and UPS. Investors are eagerly awaiting these results, which could either drive or drag on the current record-setting rally.
Nvidia and Apple Reach New Heights
Nvidia’s stock surged over 4% to reach a fresh all-time high, while Apple’s stock eked out a new record close. These gains helped mitigate the decline in the Nasdaq Composite.
Boeing Reaches Tentative Labor Deal
Boeing’s stock jumped as much as 4.5% in premarket trading after the company reached a tentative labor deal with workers who have been on strike for over a month. The contract would raise pay 35% over four years and increase Boeing’s 401(k) contributions.
Economic Data and Earnings Calendar
This week’s economic data includes the Leading Economic Index for September, while the earnings calendar features reports from SAP SE, Nucor Corporation, HBT Financial, Zions Bancorporation, and more.
Analyst Insights
Goldman Sachs predicts that the S&P 500’s decade of big gains is over, while ASML highlights the chasm in the chip industry between AI winners and everyone else. T. Rowe Price warns that Treasury 10-year yields may hit 5% within months.
Market Outlook
As earnings season heats up, investors are cautiously optimistic about the market’s prospects. However, with the rise in Treasury yields and the uncertainty surrounding the labor market, there are still meaningful uncertainties in the outlook.
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