Stock Market News Today, 10/23/23 – Stocks Rise as Bond Yields Slip 

Last updated: 4:05PM EST

Stock indices finished today’s trading session mixed. Indeed, the Nasdaq 100 (NDX) gained 0.3%, while the S&P 500 (SPX) and the Dow Jones Industrial Average (DJIA) fell 0.17% and 0.58%, respectively.

On Wall Street, Bond King Bill Gross anticipates a U.S. recession by the close of the year. He cites concerns over regional bank instability and the notable uptick in auto-loan delinquencies as indications of considerable economic deceleration.

Gross also expects the spread between the two-year and 10-year Treasury yields to turn positive before 2023 concludes. Indeed, he is moving away from the popular “higher for longer” sentiment.

Furthermore, the U.S. 10-Year Treasury yield saw a decrease to 4.85%, a seven basis point drop. Similarly, the Two-Year Treasury yield also slipped, as it hovers around 5.07%.

Last updated: 11:30AM EST

Stocks are in the green so far in today’s trading despite getting off to a slow start. This can likely be attributed to the movement in the bond market, as the 10-Year Treasury Yield has fallen to 4.87% at the time of writing after briefly crossing above the 5% mark earlier in the day.

Last updated: 9:30AM EST

Stocks opened lower at the start of the week, with the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) down by 0.81%, 0.69%, and 0.6%, respectively, at 9:30 a.m. EST, October 23.

Meanwhile, U.S. 10-Year Treasury yields briefly crossed 5% for the first time since 2007 after Federal Reserve Chairman Powell’s comments regarding further tightening of monetary policy.

First published: 4:39AM EST

U.S. Futures are jittery on Monday morning as traders await earnings from their favorite technology giants this week. Futures on the Nasdaq 100 (NDX), S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) are down by 0.03%, 0.06%, and 0.16%, respectively, at 4:35 a.m. EST, October 23.

The three major indices ended the prior week on a negative footing owing to the higher-for-longer interest rate expectation. In the meantime, the U.S. 10-year treasury yield is still up, floating near 4.98% at the time of writing. Further, the WTI crude oil futures are hovering near $87.69 per barrel as of the last check.

The September quarter earnings season picks up pace this week, with several oil companies and financial firms reporting their results. Importantly, all eyes will be on the earnings of Alphabet (GOOGL) and Microsoft (MSFT) results slated for October 24, while Meta Platforms (META) reports on October 25 and Amazon.com (AMZN) on October 26.

At the same time, traders will closely watch important economic reports this week, namely September’s S&P Global Manufacturing PMI and Services PMI (preliminary) data, preliminary estimate for Q3 GDP Growth, and the Federal Reserve’s key inflation gauge – Personal Consumption Expenditures (PCE) report.

In other news, Taiwan-based Foxconn Technology Group, one of the key suppliers of Apple’s (AAPL) iPhones, is facing investigations by the Chinese authorities into its taxes and land use. Also, Textainer Group Holdings (TGH), a leading shipping-container leasing company, has agreed to be acquired by alternative investment firm Stonepeak in a $2.1 billion deal. 

Elsewhere, European indices are trading in the red on Monday as investors assess the geopolitical situation in the Middle East and await the European Central Bank’s (ECB) decision on interest rates for the region.

Asia-Pacific Markets Ended Lower on Monday

Asia-Pacific indices finished in the red on Monday following inflation readings from across different regions. Plus, the rising bond yields are adding more pressure on stocks. Hong Kong indices remained closed for trading today.

Meanwhile, China’s Shanghai Composite and Shenzhen Component indices ended lower by 1.47% and 1.51%, respectively.

Similarly, Japan’s Nikkei and Topix indices ended down by 0.83% and 0.75%, respectively.

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