Global markets displayed a mixed performance on Monday, October 21st, with the U.S. markets leading the fluctuations. The Dow Jones Industrial Average and the S&P 500 ended the day in the red, snapping a six-week winning streak. This downturn was attributed to concerns about rising Treasury yields and elevated valuations, prompting investors to exercise caution ahead of crucial earnings reports.
Despite the overall negative sentiment, the Nasdaq Composite managed to rise 0.27%, driven by a strong performance from Nvidia. Conversely, Tesla and other technology stocks sensitive to interest rate changes slipped. The aviation sector saw a surge in Boeing’s stock price, fueled by news of potential agreement between the company and its workers to end a costly five-week strike. Spirit Airlines also soared after securing an extension to its debt refinancing deadline.
Most sectors within the S&P 500 closed lower on Monday, with real estate, healthcare, and financials leading the losses. However, technology stocks bucked the trend and finished the day higher. The Dow closed at 42,931.60, down 0.80%, while the S&P 500 ended the day at 5,853.98, down 0.18%.
Looking across the globe, Asian markets experienced mixed results on Tuesday. Japan’s Nikkei 225 closed lower by 1.60% at 38,405.50, primarily due to losses in the chemical, petroleum & plastic, rubber, and power sectors. Australia’s S&P/ASX 200 also declined, ending the day down 1.68% at 8,205.70. The healthcare, A-REITs, and consumer discretionary sectors contributed significantly to this decline. India’s Nifty 50 and Nifty 500 also traded lower, down 1.25% and 1.93% respectively. In contrast, China’s Shanghai Composite rose 0.54% to close at 3,285.87, and the Shenzhen CSI 300 gained 0.57%, finishing the day at 3,957.78. Hong Kong’s Hang Seng also showed resilience, gaining 0.10% to close at 20,498.95.
The European markets were largely negative as of 06:00 AM ET. The European STOXX 50 index was down 0.47%. Germany’s DAX declined 0.22%, France’s CAC fell 0.80%, and the U.K.’s FTSE 100 traded lower by 0.74%.
Commodities saw mixed movements. Crude Oil WTI was trading higher by 0.94% at $70.69/bbl, and Brent was up 0.82% at $74.90/bbl. This increase in oil prices was supported by U.S. diplomatic efforts to push for a Middle East ceasefire. However, weak demand growth in China weighed on the market. Natural gas prices were up 1.60% at $2.348. Gold prices rose near record highs, driven by uncertainty surrounding the U.S. election, tensions in the Middle East, and expectations of interest rate cuts. Gold was trading higher by 0.27% at $2,746.15, Silver rose 0.92% to $34.392, and Copper gained 0.67% to $4.3885.
Looking ahead, U.S. futures markets also reflected mixed sentiments as of 06:00 AM ET. Dow futures were down 0.47%, S&P 500 futures fell 0.01%, and Nasdaq 100 Futures slid 0.65%. The U.S. Dollar Index slid 0.02% to 104.00, USD/JPY was down 0.01% at 150.81, and USD/AUD declined 0.39% to 1.4960.
As the global financial landscape remains dynamic, investors and analysts will closely monitor market movements in the coming days to assess the impact of these factors on various asset classes and sectors.