US stocks experienced a mixed close on Friday, with the Nasdaq Composite nearing a record high amid a turbulent week for the markets. The tech-heavy index gained approximately 0.6%, buoyed by major tech companies ahead of their earnings reports, while the S&P 500 and Dow Jones Industrial Average faced weekly losses due to rising Treasury yields and uncertainty surrounding the Federal Reserve's interest rate policies.
The Nasdaq Composite (^IXIC) finished the day with a gain of about 0.6%, closing in on its record of 18,579. This performance was largely driven by optimism surrounding upcoming earnings reports from major tech firms, including Google, Meta, Microsoft, Apple, and Amazon. Investors are keenly awaiting these results, which could further influence market trends.
While the Nasdaq thrived, the S&P 500 (^GSPC) barely moved, closing just below the flat line after breaking a three-day losing streak. The Dow Jones Industrial Average (^DJI) fell by 0.6%, reflecting a more cautious sentiment among investors. The benchmark 10-year Treasury yield (^TNX) rose to around 4.23%, nearing a three-month high, which has contributed to the overall market uncertainty.
The Federal Reserve's interest rate policy remains a significant concern for investors. As questions arise about potential rate cuts, the market is experiencing increased volatility. The upcoming October US jobs report and the tight presidential election are also adding to the uncertainty, prompting investors to reassess their risk appetite.
The anticipation of earnings reports from the so-called "Magnificent Seven" tech giants is driving market sentiment. Following Tesla's recent earnings surprise, investors are hopeful for positive results from other major players. The earnings reports are expected to provide insights into the health of the tech sector and could influence the Nasdaq's trajectory moving forward.
Despite the mixed performance of the broader market, several stocks showed notable movements:
As the Nasdaq heads toward a potential record close, the broader market remains cautious amid rising Treasury yields and uncertainty surrounding the Federal Reserve's next moves. Investors are closely monitoring upcoming earnings reports, which could provide critical insights into the tech sector's performance and overall market direction. The coming week will be pivotal as major companies report their earnings, potentially shaping the market landscape for the remainder of the year.
The TSX composite index rises to a seven-week high as the Federal Reserve's positive economic outlook boosts investor confidence, while the Bank of Canada cuts interest rates to support the economy.
European shares rebounded as the tech selloff eased, with retail stocks leading the gains. The STOXX 600 index closed at a record high, reflecting renewed investor confidence.
Italy's government supports Banca Monte dei Paschi's bid for Mediobanca, aiming to strengthen the banking sector and enhance the economy.
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