Last Updated: 4:15 PM EST
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Stock indices finished today’s trading session mixed. The Dow Jones Industrial Average (DJIA) and the S&P 500 (SPX) fell 0.02% and 0.05%, respectively. Meanwhile, the Nasdaq 100 (NDX) gained 0.11%. This comes despite Wall Street sentiment becoming a little more positive today.
On Tuesday, Wells Fargo Investment Institute (WFII) raised its target for the S&P 500 (SPX) in 2025. Indeed, WFII is now expecting it to reach between 6,200-6,400, which is up from its previous forecast of 5,900-6,100. The analysts believe that factors like faster earnings growth and the Federal Reserve potentially lowering interest rates will help drive stocks higher.
WFII is also optimistic about the broader U.S. economy, expecting it to perform better than the eurozone. Alongside the S&P 500, they raised targets for the Russell Midcap Index and gold (GLD), predicting them to hit 3,900-4,100 and $2,800-$2,900, respectively, by the end of 2025.
Nevertheless, the 10-year Treasury yield increased again today, which could slow down the current rally if this trend continues. This is because higher yields generally put pressure on stock market valuations.
First Published: 4:58 AM EST
U.S. stock futures were down on Tuesday morning as investors braced for the third-quarter earnings season, with about one-fifth of the S&P 500 companies scheduled to report results this week. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down 0.26%, 0.23%, and 0.21%, respectively, at 4:27 a.m. EST, October 22.
On Monday’s trading session, both the Dow Jones and the S&P 500 indices retreated from their all-time closing highs, declining by 0.8% and 0.18%, respectively. The increase in Treasury yields, particularly the benchmark 10-year yield reaching 4.2% for the first time since late July, contributed to the downward pressure on equities.
Meanwhile, the Nasdaq Composite gained 0.27%, buoyed by the strong performance of tech stocks like Nvidia (NVDA) which gained over 4% and hit a new 52-week high.
In after-hours trading, Zions Bancorporation (ZION) gained 3% after reporting stronger-than-expected third-quarter results. Additionally, SAP SE (SAP) saw a significant increase of 4% after reporting Q3 earnings and revenue that surpassed expectations.
As the earnings season unfolds, investors will be closely watching results from major companies like Verizon (VZ), 3M (MMM), General Electric (GE), Lockheed Martin (LMT), General Motors (MT), and Enphase Energy (ENPH) among others. It should be noted that no major economic releases are scheduled for today.
Meanwhile, the U.S. 10-year treasury yield was up slightly at the time of writing, floating near 4.204%. At the same time, WTI crude oil futures trended lower, hovering near $70.20 per barrel as of the last check.
Elsewhere, European markets opened mixed on Tuesday as investors evaluated earnings releases from major companies including, SAP and Maersk (DE:DP4H).
Asia-Pacific Markets Traded Mixed on Tuesday
Asia-Pacific indices traded mixed today after higher U.S. Treasury yields raised concerns about future interest rate movements.
At the time of writing, Hong Kong’s Hang Seng index was up 0.10%. Further, China’s Shenzhen Component and Shanghai Composite indices closed higher by 0.54% and 0.85%, respectively. However, Japan’s Nikkei 225 and Topix indices declined 1.39% and 1.06%, respectively.
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