In the latest trading session, US equity indexes exhibited a mixed performance. After experiencing sharp recent gains, yields on government bonds retreated, creating a backdrop for a rally in Tesla ($TSLA) following the company's strong Q3 results reported overnight. The S&P 500 rose by 0.2%, closing at 5,807.8, while the Dow Jones Industrial Average saw a decline of 0.4%, settling at 42,363.5.
On a positive note, the Nasdaq Composite gained 0.6%, reaching 18,393.3. Notably, the consumer discretionary sector emerged as the standout gainer, up 3.1%, whereas the materials sector faced a downturn, dropping 1.4% during intraday trading. Tesla's impressive Q3 performance was largely attributed to stronger automotive gross margins, reduced operating costs, and a positive contribution from its full self-driving technology, as indicated in a note by BofA.
This stellar performance propelled Tesla's shares up by an astonishing 20% during intraday trading, positioning it among the top gainers on both the S&P 500 and Nasdaq indices. Molina Healthcare ($MOH) also made headlines as the top performer on the S&P 500, with its shares rising by 21% intraday after the company reported adjusted earnings and revenue for Q3 that surpassed market expectations. On the bond front, US Treasury yields experienced a slump during the trading day, with the 10-year yield decreasing by 5.8 basis points to settle at 4.18%, while the two-year rate fell by 3.7 basis points to 4.05%.
These fluctuations in yields are indicative of a potential higher sequential close this week as concerns mount over the fiscally expansionary policies proposed by the US presidential election candidates. These policies may pose a challenge to the Federal Reserve's goal of returning inflation to its 2% target, possibly resulting in prolonged higher interest rates than investors had previously anticipated. In the commodities market, gold prices increased by 0.7%, reaching $2,748.60 per ounce.
Conversely, silver prices slipped marginally by less than 0.1%, trading at $33.83. Both precious metals are now close to their record highs. Turning to economic indicators, the October flash reading of manufacturing conditions from S&P Global hit a two-month high of 47.8, up from 47.3 in September, although this figure fell short of the 47.5 expected in a Bloomberg survey.
Additionally, the composite reading also rose to 54.3 in October, up from 54.0 the previous month, marking another two-month high. On the labor front, US initial jobless claims dropped to 227,000 for the week ending on October 19, a decrease from the upwardly revised figure of 242,000 from the prior week. In the housing market, new home sales in the US surged to an annual rate of 738,000 in September, up from an earlier downwardly revised rate of 709,000 in August.
This figure exceeded the expected 720,000 rate in a Bloomberg survey and represents a 6.3% increase compared to September 2023. In the oil sector, West Texas Intermediate crude oil price decreased by 1%, settling at $70.09 per barrel. Amidst these economic developments, geopolitical tensions persist as Israel continues its military operations against Iran-backed militant groups in Gaza and Lebanon.
Meanwhile, Turkey has reportedly responded to a terror attack against a defense contractor, which it blames on Kurdish militants, by executing retaliatory airstrikes in Iraq and Syria, according to a report from The Guardian. Crude oil traders are remaining cautious as the US election date on November 5 approaches, with polls indicating that Kamala Harris and Donald Trump are currently neck-and-neck in the race..