Stock futures saw little change on Tuesday morning. S&P 500 futures inched up by 0.01%, while Nasdaq 100 futures showed a slight dip of 0.05%. Dow Jones Industrial Average volatile stocks hovered near the flat line.
Most Volatile Stocks React to Weekend Agreement
As October trading begins, cyclical stocks reflect the impact of a short-term agreement in Washington that prevented a government shutdown. The Dow experienced a marginal drop of 0.2%, while the S&P 500 inched up by 0.01%. Meanwhile, the Nasdaq Composite extended its rally for the fourth consecutive day. With the 10-year Treasury yield surpassing 4.7%, reaching levels last seen in October 2007, Wall Street grapples with the implications of increasing bond yields.
Eyes on Economic Reports and Earnings Season
After a lacklustre September for stocks, investors turn their attention to critical economic reports like the upcoming payroll data, as well as the commencement of the earnings reporting season. Expectations for a robust earnings season are tempered by concerns of economic slowing due to higher interest rates.
Negative sentiment continues into Tuesday as the Stoxx 600 index opens 0.32% lower. While utilities face a 1.3% decline, healthcare stocks manage a 0.37% gain.
Stock Control: Solar Sector Faces Setback
Renewable energy semiconductor stocks, particularly solar companies like SolarEdge and Enphase Energy, see a decline. Barclays’ downgrade of SolarEdge raises concerns about price cuts and market share losses. The Nasdaq-100 Index maintains a 14-week streak of rallying on the first day of the trading week, underlining a noteworthy market trend.
Muni Bonds Present Opportunity
While municipal bonds historically face a dip in September and October, they might see an upswing towards the end of the year. Sectors like tobacco, transportation, and healthcare outperform the broader muni market. The week starts with stock futures showing minimal movement. Dow Jones Industrial Average futures dip by 0.01%, S&P 500 futures edge up by 0.03%, and Nasdaq 100 futures tick up by 0.04%.
Dow Slides Despite Shutdown Resolution
The Dow Jones Industrial Average sees a decline of 0.22% despite a short-term agreement averting a government shutdown. Meanwhile, the S&P 500 inches up, and the Nasdaq Composite extends its positive streak. The Dow closes slightly lower, the S&P 500 inches up by 0.01%, and the Nasdaq Composite gains 0.6%.
Banking Survey Indicates Tightening Conditions
A Dallas Federal Reserve survey reveals deteriorating loan volume and demand, along with tightening credit standards, particularly in commercial real estate. S&P 500 Utilities experienced a significant intraday slide of up to 5.5%, marking their most substantial one-day drop since April 2020. This downturn is attributed to climbing volatile stocks and yields on the 10-year Treasury note.