A risk-off mood persists on Wall Street as the index futures point to a marginally lower start on Wednesday after the tech-led rebound witnessed in the previous session. Nvidia Corp. NVDA fell in premarket, followed by Apple Inc. AAPL and Tesla Inc. TSLA.
Chipmakers and chip designers will also be in focus today. While Taiwan Semiconductor Manufacturing Co. Ltd. TSM alerted the U.S. about a potential violation of expert rules, Qualcomm Inc. QCOM faces the threat of its chip designing license being canceled by Arm Holdings Plc. ARM.
On Wednesday, investors will have Tesla, Boeing Co. BA, AT&T Inc. T, Starbucks Corp. SBUX, Spirit Airlines Inc. SAVE, and McDonald's Corp. MCD on their radar.
| Futures | Performance (+/-) |
| Nasdaq 100 | -0.30% |
| S&P 500 | -0.18% |
| Dow Jones | -0.40% |
| R2K | -0.30% |
In premarket trading on Monday, the SPDR S&P 500 ETF Trust SPY fell 0.21% to $582.10 and the Invesco QQQ ETF QQQ declined 0.22% to $494.34, according to Benzinga Pro data.
Cues From Last Session:
Investors remained cautious, with most sectors on the S&P 500 index closing the day in the red. However, consumer staples and communication services stocks beat the overall trend to rise.
Tech stocks helped the Nasdaq Composite index close the day in the green, bucking a wider decline in the markets.
| Index | Performance (+/-) | Value |
| Nasdaq Composite | 0.18% | 18,573.13 |
| S&P 500 | -0.05% | 5,851.20 |
| Dow Jones | -0.02% | 42,924.89 |
| Russell 2000 | -0.37% | 2,231.53 |
Insights From Analysts:
Following six consecutive weeks of gains, the markets have remained gloomy this week, with tech stocks offering some respite amid sideways movements in most other sectors.
One of the factors playing on investors' minds is the rise in benchmark US 10-year treasury yields, which rose to their highest mark since July.
On the economic data front, the composite manufacturing index in the US Fifth District came in at -14 for October compared to a reading of -21 in the prior month.
"We now recommend moving to the sidelines. We think investors are likely to as well; the risk rally should stall for the next few weeks," said analysts at Barclays in a note according to CNBC, commenting on the gloomy performance in equity markets this week.
The International Monetary Fund, though, expects U.S. growth to remain strong. According to its latest World Economic Outlook report, the IMF revised its projected U.S. GDP growth rate to 2.8%, up from its previous projection of 2.6%.
For 2025, IMF revised U.S. GDP growth projections upwards from 1.9% to 2.2%.
Charlie Bilello, Chief Market Strategist at Creative Planning, highlighted a continued surge in gold prices, which rose to a new all-time high of $2,772.55 an ounce.
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Upcoming Economic Data:
- Fed Governor Michelle Bowman is scheduled to deliver a speech at 9 a.m. ET.
- Existing home sales data is scheduled to be released at 10 a.m. ET.
- Federal Reserve Bank of Richmond President Thomas Barkin will speak at noon ET.
- The Federal Reserve will also publish its latest ‘Beige Book' at 2 p.m. ET.
Stocks In Focus:
- Tesla will release its third-quarter earnings after market hours. Analysts expect EPS to fall below estimates.
- McDonald's hamburgers have been linked to an E-coli outbreak.
- Frontier Airlines ULCC is reportedly considering renewing its bid for Spirit Airlines.
- Starbucks reported weak preliminary results and suspended guidance for the full fiscal year 2025.
- Telecom major AT&T is scheduled to report its earnings before markets open.
Commodities, Bonds And Global Equity Markets:
Crude oil futures fell in the early New York session, falling nearly 1.8% as data showed a rise in U.S. inventory, exceeding expectations.
The 10-year Treasury note yield rose marginally to 4.222%.
Asian markets were mixed on Wednesday, with Chinese markets edging up while Japan's Nikkei 225 declined.
European stocks continued to remain tentative and were mostly lower in early trading.
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