On a significant trading day, US benchmark equity indexes witnessed a commendable rise, with the Dow Jones Industrial Average achieving a remarkable new record. This comes as markets weighed the implications of the latest corporate earnings reports. The Dow escalated by 0.8%, reaching 43,077.7, while the S&P 500 appreciated by 0.5%, closing at 5,842.5.
The Nasdaq Composite followed suit, climbing 0.3% to land at 18,367.1. Among the various sectors, utilities marked the highest gains, while only the communication services and consumer staples sectors experienced a decline. In the latest corporate headlines, United Airlines experienced a striking surge, with shares skyrocketing by 12%, making it the leading gainer on the S&P 500.
The airline disclosed its third-quarter performance late Tuesday, exceeding Wall Street's projections, driven by sustained demand for air travel, which has remained robust. Morgan Stanley also made headlines as it emerged as the third-best performer on the S&P 500, with a notable increase of 6.5%. The financial institution revealed its stronger-than-anticipated third-quarter outcomes, bolstered by elevated asset levels and a boost in investment banking earnings.
This surge was indicative of a rise in deal activities and initial public offerings. Cisco Systems joined the ranks of top performers, with its shares climbing by 4.3%, securing its position as the best performer on the Dow. This rise followed a strategic upgrade from Citigroup, which elevated Cisco’s stock rating from neutral to buy, also adjusting the price target upwards from $52 to $62. In contrast, ASML saw its shares decline by 6.4%, which marked it as the worst performer on the Nasdaq.
This dip was a consequence of a previous day’s staggering 16% fall. The Dutch chip equipment manufacturer revised its fiscal 2025 sales outlook, moderating the upper end of the guidance. During an earnings call, Chief Executive Christophe Fouquet articulated, 'While we continue to view artificial intelligence as a key driver of the industry recovery with potential upside, we see other segments recovering more slowly than anticipated.' He further mentioned that the recovery trajectory is expected to extend 'well into' the next year. In the bond market, the US 10-year yield slipped by two basis points to reach 4.02%, while the two-year rate decreased by 1.4 basis points, landing at 3.94%. On the commodities front, West Texas Intermediate crude oil experienced a minor increase, rising by 0.1% to settle at $70.62 per barrel.
Prices steadied, underpinned by output cuts from the Organization of the Petroleum Exporting Countries and its allies, amid geopolitical uncertainty in the Middle East. According to D.A. Davidson, 'An outlook for ample supply next year added downward pressure' on oil prices. Separately, the International Energy Agency noted that the burgeoning momentum in clean energy resources, amidst rising electricity demand, is 'strong enough' to potentially peak demand for oil and other fossil fuels by the decade's end. In economic updates, the Mortgage Bankers Association reported a continuing downward trend in mortgage applications within the US, marking a third consecutive week of decline as interest rates across all loan types escalated.
Precious metals also saw positive movement, with both gold and silver increasing by 0.4% to $2,689.8 per troy ounce and $31.89 per ounce, respectively..