US stocks fell, ending a six-week winning streak for the S&P 500 and the Dow. Rising bond yields and solid economic data contributed to the market pause. Investors will be paying attention to the future earnings of high-tech companies, and the monetization trend of AI will be the center of attention.
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U.S. stocks were mostly lower on Friday, capping a losing week for the S&P 500 and Dow Jones Industrial Average.
Friday ended six-week winning streaks for both averages, but gains in mega-cap tech stocks fueled a seventh week of gains, sending the Nasdaq index to a new all-time high.
After a strong rally since the start of the month, this week’s sharp rise in bond yields has become a major hurdle for investors.
US 10-year Treasury yields rose nearly 20 basis points this week as macro indicators suggest the economy remains resilient and on solid footing.
Meanwhile, investors are paying close attention to third-quarter results, with many of the biggest tech companies scheduled to report results next week, including Apple, Meta, Microsoft, and Amazon.
Commentary surrounding AI monetization trends will likely be of primary interest to investors as they peruse earnings reports.
Ido Caspi, research analyst at Global “I expect it will be a combination of certain ads.”
“We expect to see further evidence of generative AI moving along its growth curve and a continued transition from experimentation to widespread monetization,” he added.
So far, 36% of S&P 500 companies have reported results. Of these companies, 79% beat earnings estimates by a median of 6%, and 58% beat earnings estimates by a median of 2%, according to Fundstrat data.
Traders will next week scrutinize updates on several economic indicators, including September consumer spending, the Fed’s preferred inflation measure, and October employment data. September data shows a staggering 254,000 jobs added in the month.
Similar strong numbers are likely to dampen expectations for rate cuts further, as the market sees less urgency for the Fed to support the economy.
Here are the U.S. indices as of Friday’s close at 4 p.m.
Here’s what else happened today:
In Commodities, Fixed Income and Cryptocurrencies:
West Texas Intermediate crude oil rose 2.19% to $71.73 per barrel. Brent crude, the international benchmark, rose 2.11% to $75.95 per barrel. Gold rose 0.30% to $2,757.10 per ounce. The 10-year Treasury yield rose 3 basis points to 4.246%. Bitcoin fell 1.83% to $66,914. .
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