Strong Earnings Lift the Market
U.S. indexes ended the session mixed on Tuesday. The S&P 500 closed flat, the Dow Jones gained 0.47% to a new record high, while the Nasdaq 100 slipped 0.06%. The broader market was supported by impressive earnings reports from General Motors, 3M, RTX, and Coca-Cola — all of which beat Wall Street expectations and raised full-year guidance.
General Motors was the star of the day, soaring 14% after raising its EPS forecast to $9.75–$10.50 per share. 3M and RTX also jumped over 7% after improving their revenue and profit projections. Coca-Cola added more than 3% after reporting stronger-than-expected earnings.
Pressure on Miners and Chipmakers
Despite strong earnings, the market faced headwinds from the mining sector. Following last week’s record rally, gold and silver prices plunged 5–7%, triggering a wave of profit-taking and sharp declines in major mining stocks. Shares of Newmont and Barrick lost more than 9%, followed by Kinross Gold and AngloGold Ashanti.
The technology sector also weighed on sentiment. Semiconductor shares declined across the board — from Micron and AMD to Nvidia and ASML — dragging the Nasdaq lower. Investors grew cautious after OpenAI unveiled the world’s first AI-powered web browser, sparking fresh competition fears for Alphabet’s Google.
Political Uncertainty and Fed Expectations
Markets remain focused on U.S.–China trade talks. President Donald Trump reiterated his threat to raise tariffs if a deal isn’t reached by November 1, but his upcoming meeting with President Xi Jinping at the APEC summit offers some hope of progress.
Meanwhile, the ongoing government shutdown — now in its fourth week — continues to weigh on sentiment, delaying key economic reports. Bloomberg estimates around 640,000 federal workers have been furloughed, potentially pushing the unemployment rate to 4.7%.
Futures markets now price in a 97% probability of a 25-basis-point rate cut at the October 28–29 FOMC meeting. The 10-year Treasury yield fell to 3.95%, signaling investor expectations for further monetary easing.
Global Markets Stay Positive
Despite U.S. uncertainty, global markets remained upbeat. The Euro Stoxx 50 hit an all-time high, Japan’s Nikkei rose 0.27%, and China’s Shanghai Composite advanced 1.36%.
European bond yields moved lower as investors sought safety: the German 10-year bund yield slipped to 2.55%, while the U.K. gilt yield fell to 4.48%.
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