Tech stocks spearheaded a tumultuous trading session on Tuesday, as investors carefully assessed freshly released employment data and closely monitored a deluge of corporate earnings announcements in anticipation of Alphabet’s (GOOG, GOOGL) much-anticipated quarterly results.
The tech-heavy Nasdaq Composite (^IXIC) reversed earlier declines, gaining approximately 0.8% in value, powered by Broadcom (AVGO), which surged nearly 4% following news that it aims to collaborate with Microsoft’s OpenAI (MSFT) to create a groundbreaking artificial intelligence chip. Currently, the Nasdaq is poised for a potential record-setting close.
As the markets reacted, the benchmark S&P 500 (^GSPC) mirrored the Nasdaq’s upward trend, climbing about 0.3% even after a shaky start to the trading day. Contrarily, the Dow Jones Industrial Average (^DJI) stood out as the only major index in negative territory, dipping roughly 0.2%, translating to a loss of less than 100 points.
New data from the Bureau of Labor Statistics revealed a falling trend in job openings, with the number of available positions declining to 7.44 million at the end of September, down from 7.86 million in August. This figure was also adjusted downward from an initial estimate of 8.04 million open jobs.
Investors are scrutinizing the labor market closely, awaiting further signs of easing ahead of the Federal Reserve’s next monetary policy meeting scheduled for Nov. 7. Key updates regarding inflation and employment later this week are expected to significantly influence the Fed’s decision-making.
Alphabet’s earnings report, set to be disclosed after the market closes, is highly anticipated, with investors keen to assess if the tech giant’s substantial investments in artificial intelligence are yielding tangible benefits. Alphabet holds the distinction of being the first among the five “Magnificent Seven” mega-cap firms scheduled to release earnings in the next few days, making its results critical in shaping market expectations as we enter November.
This week marks the peak of earnings season, with major corporations like McDonald’s (MCD), PayPal (PYPL), and Pfizer (PFE) slated to announce their financial performance before the market opens. Following the market’s close, AMD (AMD), Chipotle (CMG), and Visa (V) will provide their earnings updates alongside Alphabet.
On the political front, the upcoming US presidential election is injecting a layer of uncertainty into the markets as the final days of campaigning unfold. Trump Media & Technology Group stock (DJT) experienced a notable rally, gaining double digits after a brief trading suspension earlier in the day. The stock’s ascent builds upon an impressive 21% rise on Monday, spurred by Donald Trump’s rally in New York over the weekend.
Spotify has reached an all-time stock high, trading at around $395 a share after a more than 3% increase on Tuesday. This remarkable resurgence reflects Spotify’s aggressive $1 billion investment in the podcast market over the past four years, alongside substantial acquisitions of $400 million in studio assets.
Following a disappointing profit forecast, Ford Motor (F) saw its stock price drop more than 9% early Tuesday. The automaker cited high warranty costs and supply chain disruptions as contributing factors to this lowered financial outlook.
Trump Media & Technology Group stock (DJT) was briefly halted in early trading on Tuesday after shares extended their five-week surge, rising around 10% shortly after the opening bell. The stock moves come as investors bet on improved chances of Donald Trump winning the November presidential election.
McDonald’s beat earnings expectations in the third quarter, but Wall Street remains hyper-focused on its recent E. coli outbreak. Shares are up a little over 1% in early trading.
The large uptick in confidence came as consumers digest recent signs that the US economy remains on solid footing. Consumer confidence shot higher in October, hitting a reading of 108.7, up from 99.2 in September. This marked the largest monthly gain in confidence since March 2021, according to the Conference Board.
Bitcoin prices (BTC-USD) rose around 5% on Tuesday to surpass a key technical level and hover just below $72,000 per token, the highest since early June. This increase is attributed to substantial inflows in US spot bitcoin ETFs, amounting to $472.6 million on Monday, marking a significant continuation of the gains seen over the previous week.
Fewer Americans see a recession in the next 12 months, with October’s consumer confidence survey revealing a decrease in the perceived likelihood of a recession, reaching the lowest level since questions on this topic were first posed in June 2022.
Tech (XLK), Communication Services (XLC), and Industrials (XLI) led Tuesday’s sector action, with markets trading mixed as traders assessed new jobs data and a slew of earnings reports. Oil prices were a standout, with WTI crude (CL=F) falling for the second straight session to trade above $67 a barrel.
