Wall Street took a tumble on Tuesday, marking its second consecutive day of losses. Investor sentiment turned cautious as the U.S. presidential election, just two weeks away, loomed large. The looming uncertainty about potential shifts in fiscal policies and the direction of the economy fueled a pause in risk-taking.
The International Monetary Fund (IMF) offered a glimmer of optimism by upgrading its growth forecasts for the U.S. in 2024 and 2025. However, the IMF also sounded the alarm about the country’s rising debt levels, warning that the U.S. public debt is on an unsustainable trajectory. This concern, tied to the current large fiscal deficits, added to the market’s jitters.
While stocks faltered, commodities shone brightly on Tuesday. Both metals and energy experienced notable gains. Gold, tracked by the SPDR Gold Trust (GLD), surged 0.8%, pushing further into record territory. This surge extended its year-to-date performance to an impressive 34%, poised for its strongest annual gain since 1979. Gold miners, as represented by the VanEck Gold Miners ETF (GDX), continued their rally for the ninth consecutive session, hitting their highest levels in over four years. Silver, tracked by the iShares Silver Trust (SLV), experienced a 2.8% surge, reaching levels not seen since October 2012.
Oil prices also climbed, rallying nearly 3%, adding to the 2% surge from Monday. U.S. Treasury yields ticked up modestly on Tuesday, following Monday’s spike, with the 10-year yield settling at 4.21%. The U.S. Dollar Index (DXY), tracked by the Invesco DB USD Index Bullish Fund ETF (UUP), continued its steady ascent, pushing past the 104 mark and eyeing a fourth consecutive week of gains.
In the cryptocurrency market, Bitcoin (BTC/USD) dipped 0.5%, falling to around $67,000 and marking its second consecutive day of declines.
Tuesday’s Performance in U.S. Major Indices and ETFs:
*
Dow Jones:
42,907.57 (-0.1%)*
S&P 500:
5,840.39 (-0.2%)*
Nasdaq 100:
20,291.15 (-0.3%)*
Russell 2000:
2,228.60 (-0.5%)
Notable ETF Performances:
*
SPDR S&P 500 ETF Trust (SPY):
-0.3% to $581.79*
SPDR Dow Jones Industrial Average (DIA):
-0.1% to $429.14*
Invesco QQQ Trust Series (QQQ):
-0.4% to $493.29*
iShares Russell 2000 ETF (IWM):
-0.5% to $221.04*
Energy Select Sector SPDR Fund (XLE):
+0.6%*
Industrial Select Sector SPDR Fund (XLI):
-1.1%
Top Stock Performers:
*
General Motors Co. (GM):
+9%, on track for its strongest session in nearly a year, driven by strong earnings and a $5 billion share buyback program extending into next year.*
Other stocks reacting to earnings:
*
Southern Copper Corp. (SCCO):
+1.5%*
Nucor Corp. (NUE):
-6%*
W.R. Berkley Corp. (WRB):
-4.6%*
Zion Bancorp. N.A. (ZION):
+6.8%*
Wintrust Financial Corp. (WTFC):
+1.6%*
Philip Morris International Inc. (PM):
+8.8%*
GE Aerospace (GE):
-over 8%*
Danaher Corp. (DHR):
-3%*
Verizon Communications Inc. (VZ):
-4.4%*
RTX Corp. (RTX):
-0.4%*
Lockheed Martin Corp. (LMT):
-5.8%*
Fiserv Inc. (FI):
-0.4%*
Moody’s Corp. (MCO):
-4.5%*
3M Company (MMM):
-0.9%*
Freeport-McMoran Inc. (FCX):
+1.4%*
Kimberly-Clark Corp. (KMB):
-4%*
PulteGroup Inc. (PHM):
-5.7%
Earnings After the Close:
*
Texas Instruments Inc. (TXN)
*
Baker Hughes Co. (BKR)
*
Seagate Technology Holdings PLC (STX)
*
Packaging Corporation of America (PKG)
*
Manhattan Associates Inc. (MANH)
*
East West Bancorp. Inc. (EWBC)
*