US benchmark equity indexes experienced intraday declines as investors scrutinized the latest comments from a Federal Reserve official alongside a survey reflecting consumers' inflation expectations. The Dow Jones Industrial Average dropped 0.7%, reaching 43,964.7, by midday Tuesday, while the S&P 500 fell 0.5% to 5,971.1.
The Nasdaq Composite also witnessed a 0.4% decrease, settling at 19,219.8. Among the sectors reviewed, materials and utilities faced the most significant setbacks, whilst communication services, technology, and consumer staples performed well. Richmond Fed President Tom Barkin shared that the US economy is "in a good place", with interest rates stabilizing below recent peaks and historic lows.
This scenario allows policymakers to "respond appropriately" regardless of economic developments. On Thursday, the Federal Open Market Committee of the central bank decided to reduce its benchmark lending rate by 25 basis points, following a substantial 50-basis-point decrease in September. Meanwhile, the US 10-year yield increased by 12 basis points to 4.43%, with the two-year rate advancing 8.8 basis points to 4.34%.
In economic trends, US consumers' inflation expectations presented a slight drop across short-, medium-, and long-term horizons in October. Official data is anticipated to reveal on Wednesday that US consumer inflation rose by 0.2% sequentially and by 2.6% annually last month. Furthermore, producer prices data for October is set to be released on Thursday.
Turning to company-specific news, Mosaic ($MOS) saw its shares plummet by 8.9%, marking the steepest decline on the S&P 500, due to third-quarter financial results that fell below expectations. Electric vehicle manufacturer Tesla ($TSLA) was the worst performer on the Nasdaq and one of the laggards on the S&P 500, dropping by 6.2%.
Conversely, Tyson Foods ($TSN) surpassed both top- and bottom-line expectations for its fiscal fourth quarter, offering guidance that suggests a moderate sales decline in the upcoming year amidst uncertainties in its beef sector. As a result, the company's shares increased by 7.7%, making it the top gainer on the S&P 500.
Live Nation Entertainment ($LYV) reported a 4.5% increase in share value, ranking among the S&P 500's best performers after revealing mixed third-quarter outcomes late Monday, along with noting robust demand for its Ticketmaster sales segment in the current quarter extending into 2025. Additionally, Spotify Technology ($SPOT), Occidental Petroleum ($OXY), and Flutter Entertainment ($FLTR) are on the list of companies expected to release their quarterly results after the closing bell Tuesday.
The West Texas Intermediate crude oil price edged up 0.2% to $68.17 a barrel during intraday trading. Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) has adjusted its global oil demand forecasts downward for both 2024 and 2025 for the fourth consecutive month while elevating its projections for world economic growth.
In metals, gold declined by 0.5%, settling at $2,604.80 per troy ounce, whereas silver rose by 0.5% to $30.78 per ounce..