US equity indexes fell in midday trading Tuesday as a continued march up in government bond yields undermined investors' risk sentiment. The S&P 500 slid 0.3% to 5,838.5, with the Dow Jones Industrial Average down fractionally to 42,912.6, and the Nasdaq Composite traded 0.3% lower at 18,489.6. Industrials and materials led the decliners intraday, while consumer staples and energy led the gainers.
Last week, the S&P 500 and the Dow hit new record highs. Most US Treasury yields rose intraday, with the 10-year yield up 1.4 basis points to 4.2%, trading close to its highest since the end of July. The two-year yield rose 1.2 basis points to 4.04%. A bonds' sell-off pushed Treasury yields higher, pressuring rate-sensitive stocks, as noted by D.
A. Davidson. Investors are now awaiting a deluge of corporate earnings this week, especially from the technology sector, for a clearer market direction. In economic news, the Richmond Federal Reserve's monthly manufacturing index improved to minus 14 in October from minus 21 in September, compared with expectations for minus 17 in a survey compiled by Bloomberg.
This reading signals a slower pace of contraction, aligning with the New York Fed's Empire State reading but contrasting with the Philadelphia Fed's measure suggesting expansion in the sector. The Philadelphia Federal Reserve Bank's monthly nonmanufacturing activity index rebounded to 6.0 in October from minus 6.1 in the previous month, compared with expectations of 4.1 in a survey compiled by Bloomberg.
This index indicates expansion, in contrast with the New York Federal Reserve's services measure, which has signaled contraction. For the US, the International Monetary Fund now sees a 2.8% gain in 2024 after a 2.9% increase in 2023, marking an upward adjustment from the 2.6% growth estimate for 2024 in July.
A slowdown to 2.2% growth is anticipated during 2025, an upward adjustment from the previously estimated 1.9% gain. In company news, Genuine Parts reported lower Q3 adjusted diluted earnings and reduced its full-year 2024 adjusted EPS guidance range. Its shares sank 20% intraday, marking the worst performance on the S&P 500 today. General Motors reported a year-over-year jump in Q3 adjusted earnings and revenue, exceeding market expectations.
Shares advanced 8.9% intraday, making it the top performer on the S&P 500. Verizon Communications shares fell 4.4% intraday, noted as the steepest decliner on the Dow after the company reported a year-over-year decline in Q3 adjusted earnings and operating revenue. Meanwhile, West Texas Intermediate crude oil saw an increase of 1.4% to $71.54 a barrel..