The Dow Jones Industrial Average and the S&P 500 continued their impressive record closing streak on Monday as traders looked forward to important corporate earnings reports scheduled for later in the week. In detail, the S&P 500 saw a rise of 0.8%, reaching 5,859.9, while the Dow made an increase of 0.5%, closing at 43,065.2—an unprecedented milestone of exceeding 43,000 for the first time.
The Nasdaq Composite also advanced, rising 0.9% to a mark of 18,502.7. Excluding the energy sector, all other sectors recorded gains, prominently led by technology and utilities. This week, several major companies are on deck to report their quarterly financial results including UnitedHealth, Johnson & Johnson, Bank of America, Goldman Sachs, Citigroup, Netflix, Morgan Stanley, Procter & Gamble, and American Express. In individual company news, Vistra experienced a remarkable 5.6% jump in its shares, making it the best performer on the S&P 500, as BNP Paribas Exane initiated coverage and rated it as outperform, setting a price target of $231. Meanwhile, Longboard Pharmaceuticals has agreed to be acquired by the Danish pharmaceutical company H.
Lundbeck, in a significant deal valued at approximately $2.6 billion, prompting Longboard's shares to surge nearly 52%. On the downside, Boeing faced the second-largest decline on the Dow with a drop of 1.3%. The troubled aeronautics company had outlined plans to reduce its workforce and disclosed a preliminary third-quarter loss that exceeded Wall Street's expectations. In the commodity sector, West Texas Intermediate crude oil price fell by 2%, settling at $74.02 a barrel on concerns over China's oil demand, while traders expressed anxiety over possible Israeli attacks on Iranian oil infrastructure. In a separate note, the Organization of the Petroleum Exporting Countries has adjusted its global oil demand projections for 2024 and 2025 downward but maintained its supply estimates stable. Recent economic indicators, such as a higher-than-expected consumer inflation rate and robust job reports, could suggest the economy is not decelerating as much as previously thought, Federal Reserve Governor Christopher Waller commented. Waller further advised caution, stating, "While we do not want to overreact to this data or look through it, I view the totality of the data as saying monetary policy should proceed with more caution on the pace of rate cuts than was needed at the September meeting." Simultaneously, Minneapolis Fed President Neel Kashkari indicated that "further modest reductions" in the Federal Reserve’s benchmark lending rate are likely appropriate in the upcoming quarters.
"Ultimately, the path ahead for policy will be driven by the actual economic, inflation, and labor market data," Kashkari noted. Notably, last month, the Federal Open Market Committee cut interest rates by 50 basis points. Market expectations are currently pricing in an 86% probability for a 25 basis point policy easing next month, with a remaining likelihood favoring stable rates, according to the CME FedWatch tool. The US bond market remained closed on Monday in observance of Columbus Day. In precious metals, gold declined by 0.3% to $2,669.40 per troy ounce, while silver saw a decrease of 0.8%, resting at $31.5 per ounce. .