S&P 500 and Nasdaq 100: Futures Rebound as Tesla Powers Tech Stocks Higher
While tech stocks surged, the Dow Jones Industrial Average faced headwinds. IBM dropped more than 3% as the company missed revenue targets, with its consulting division falling short of estimates. Boeing shares also declined by over 2%, weighed down by labor issues after its machinists rejected a new contract, extending a five-week strike. These factors contributed to the Dow’s underperformance compared to the broader market.
Earnings Season Update
With more than 27% of S&P 500 companies having reported their third-quarter results, 76% of them have exceeded Wall Street expectations, according to FactSet. The strong earnings performance has helped mitigate some of the negative sentiment from recent market declines, particularly after the S&P 500 and Nasdaq suffered losses of nearly 1% and 1.6%, respectively, on Wednesday.
Treasury Yields and Market Sentiment
U.S. Treasury yields eased on Thursday, providing a tailwind for equities. The 10-year Treasury yield, which had reached 4.25% during Wednesday’s session, retreated slightly, alleviating some of the pressure that rising yields had placed on the stock market earlier in the week. Lower yields are seen as supportive for stocks, especially in interest-sensitive sectors like technology.
Market Outlook
Despite recent volatility, market sentiment appears to be stabilizing, driven by strong earnings reports. While concerns around rising Treasury yields and labor strikes persist, the robust performance from key companies such as Tesla and Lam Research has injected optimism into the market.