US benchmark equity indexes were lower ahead of Tuesday's close as markets evaluated the latest batch of corporate earnings, while oil prices slumped significantly. The Nasdaq Composite, a key indicator for the technology sector, was down 1.2% at 18,285.4. Similarly, the S&P 500, which reflects the performance of the top 500 publicly traded companies, fell 0.8% to 5,810.7.
The Dow Jones Industrial Average, a traditional benchmark for the US stock market, lost 0.8% to 42,734.5, indicating a broader trend of investor caution. Among sectors, energy witnessed the steepest decline, impacted by fluctuating oil prices, while real estate emerged as a surprising leader among gainers.
Notably, shares of ASML and UnitedHealth Group fell sharply after both companies reported their latest quarterly results, reflecting investor sentiment following disappointing earnings. In contrast, Walgreens Boots Alliance rallied, suggesting market confidence in its performance. Looking ahead, United Airlines, Omnicom Group, and J.B.
Hunt Transport Services are among the companies scheduled to report results after the closing bell, keeping investors on edge as earnings season continues. This period is crucial as companies reveal their financial health and future outlooks. In another significant shift, West Texas Intermediate crude oil saw a substantial decline of 3.8%, trading at $71 a barrel, following news that Israel reportedly does not plan to target Iran's oil facilities.
This geopolitical update adds to the complex dynamics influencing oil prices globally and could have future repercussions across various sectors. Furthermore, the US 10-year yield fell 4.3 basis points to 4.03%, while the two-year rate saw a slight rise of one basis point to 3.95%. These changes in yields illustrate how the bond market is responding to the current economic conditions and investor expectations moving forward. Overall, the market's reaction to earnings reports and geopolitical developments indicates a cautious but engaged investment landscape, where sector performance varies widely and future outlooks could shift markedly based on upcoming results and broader economic indicators..