On Tuesday, US equity indexes experienced a notable uptick after midday trading, primarily driven by a resurgence in technology shares amidst a pullback in crude oil futures. The Nasdaq Composite surged by 1.1%, reaching a value of 18,128.7. Concurrently, the S&P 500 rose by 0.7% to 5,737.8, while the Dow Jones Industrial Average noted a modest increase of 0.2%, standing at 42,030.7.
Remarkably, all sectors exhibited gains with the exception of energy and materials, making technology stocks the remarkable standout of the trading sessions. In the commodities market, West Texas Intermediate crude oil futures faced a significant decline of 4.7%, settling at $73.53 a barrel. This dip in oil prices occurs amid ongoing geopolitical tensions, notably as Hezbollah has expressed support for initiatives aimed at achieving a ceasefire in Lebanon.
Reports from CNN indicate that this marks the first occasion the Iran-backed group has publicly backed a truce without stipulating terms related to the ongoing war in Gaza. From an economic perspective, the latest data shows that Redbook US same-store sales increased by 5.4% on a year-over-year basis for the week ending October 5, following a slightly lower increase of 5.3% the previous week.
Furthermore, the US international trade deficit narrowed significantly to $70.43 billion in August, down from a $78.92 billion deficit in July. This figure is also favorable when compared to the anticipated $70.5 billion gap, as reported by a survey issued by Bloomberg. This reduction in the trade deficit corresponds with a rise in exports while imports experienced a decline. Moreover, US Treasury yields presented a mixed performance during intraday trading.
The 10-year yield remained unchanged at 4.03%, marking its peak since late July. Meanwhile, the two-year rate decreased by 4.2 basis points, landing at 3.96%, as it retreated from its highest levels since the end of August. In corporate updates, Goldman Sachs has upped its price target for Palo Alto Networks (PANW) from $376 to $425 while sustaining a ‘buy’ rating for the cybersecurity provider.
Additionally, BNP Paribas Exane has initiated coverage on Palo Alto Networks with an ‘outperform’ rating and established a $410 price target. On account of these updates, shares of Palo Alto Networks demonstrated significant momentum, trading up 5.2% intraday, positioning it as the top performer on both the S&P 500 and the Nasdaq..