Bank Earnings Propel Wall Street To Record Peaks, Oil Plunges Below $70, Gold Shines At All-Time Highs: This Week In The Market

Wall Street powered ahead this week as stronger-than-expected bank earnings and upbeat guidance pushed the S&P 500 and Dow Jones Industrial Average to record highs.

The September retail sales report positively surprised expectations, while a notable drop in weekly jobless claims reinforced the perception that the U.S. economy remains strong.

This momentum has led some economists to reconsider their expectations for the Federal Reserve's next move, with growing doubts about the likelihood of further interest rate cuts as the economy races at full throttle.

The recent upswing in Treasury yields brought a twist to the housing market, sending mortgage rates soaring and hammering mortgage demand. Homebuyers pulled back sharply, with mortgage applications recording the sharpest weekly plunge since the depths of the pandemic in April 2020.

In the commodities market, oil prices tumbled below the $70-per-barrel mark, marking their worst weekly performance since December 2022. The selloff was triggered by a slight easing of tensions in the Middle East, though the geopolitical landscape remains fraught with risk.

Gold's Bullish Trend

Gold, as tracked by the SPDR Gold Trust GLD, shined bright this week, surging to an all-time high above $2,700 per ounce. The precious metal logged four consecutive days of gains, cementing its status as a safe-haven asset ahead of the highly awaited U.S. presidential elections. Bank of America sees further upside to $3,000 per ounce.

Netflix Beats Expectations

Netflix Inc. NFLX reported strong third-quarter earnings, exceeding both revenue and EPS forecasts, and provided bullish guidance for the fourth quarter. The streaming giant anticipates a significant subscriber boost, largely driven by the popularity of “Squid Game” and its upcoming global content expansions.

Bitcoin ETF Inflows

BlackRock’s iShares Bitcoin Trust IBIT saw strong inflows, surpassing $1 billion in a week, indicating strong institutional interest. Fidelity leads Ethereum ETFs with $31 million in assets, reflecting growing demand for cryptocurrency exposure in traditional investment vehicles.

iPhone 16 Sales

Apple Inc. AAPL's iPhone 16 experienced a 20% sales increase in China, fueled by strong demand. The absence of AI capabilities led to early price cuts, highlighting competitive market pressures and evolving consumer expectations for advanced smartphone features.

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