U.S. stock indexes finished higher on Thursday — the S&P 500 gained +0.58%, the Dow Jones rose +0.31%, and the Nasdaq advanced +0.88%. The rally was led by oil producers after the U.S. government imposed sanctions on Russia’s state-run Rosneft and Lukoil, sparking a 5% jump in WTI crude prices.
Among the top gainers were Dow Inc. (+12%), which reported stronger-than-expected earnings, and Honeywell (+6%), which beat sales forecasts. Energy companies such as Occidental Petroleum, Valero Energy, Halliburton, and Devon Energy gained between +3% and +7%, reflecting investors’ renewed optimism in the sector.
Sanctions and Diplomacy Shape Market Sentiment
Late Wednesday, Washington announced new sanctions on Rosneft and Lukoil, accusing Moscow of showing “no serious commitment to peace in Ukraine.” The restrictions could effectively isolate these firms from international financial markets and create further tension in global oil supply chains.
Meanwhile, the White House confirmed that President Trump will meet Chinese President Xi Jinping on the sidelines of next week’s APEC summit in South Korea. The news boosted risk appetite and renewed hopes that U.S.–China trade relations may stabilize.
Adding to the upbeat tone, September existing home sales rose 1.5%, hitting a seven-month high. Despite the ongoing fourth week of the U.S. government shutdown, economic data has remained relatively stable, though the delay of key inflation and employment reports has raised uncertainty among analysts.
Treasury Yields Rise as Inflation Fears Return
The 10-year Treasury yield climbed to 3.99%, pressured by higher oil prices and inflation expectations. Still, the prolonged government shutdown could weaken consumer spending and support the case for the Federal Reserve to cut rates by 25 bps at its next meeting on October 28–29.
Corporate Highlights: Record Winners and Sharp Declines
Earnings season continues to surprise on the upside — according to Bloomberg Intelligence, 85% of S&P 500 companies have beaten estimates, marking the best quarter since 2021. Notable gainers included Las Vegas Sands (+12%), West Pharmaceutical (+10%), and Dover (+8%).
However, several firms disappointed investors. Molina Healthcare plunged -17% after cutting its profit forecast, while Super Micro Computer fell -8% on weak preliminary revenue. T-Mobile (-3%), Southwest Airlines (-6%), and Roper Technologies (-5%) also declined after underwhelming results.
Energy and Quantum Tech Lead the Week
The surge in oil prices strengthened confidence in the energy sector, while news that the U.S. Commerce Department may take equity stakes in quantum-computing firms in exchange for federal funding sent IonQ, Rigetti Computing, and Quantum Computing Inc. up more than +6%.
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