Equities pulled back on Monday, with the S&P 500 0.26% from its recent record highs. Ten-year Treasury yields climbed while investors prepared for a big week of earnings reports. The Dow Jones Industrial Average declined by about 0.45%, and the Nasdaq was flat and unchanged.
But there are relative bright spots here, too – Nvidia (NVDA, Financial) today reached its intraday record, and while Apple (AAPL, Financial) is slightly below its highest close, this clearly shows that not every stock is being crushed. Currently, most attention is paid to further earnings season, which may support the rally or slow it down. This week is rather sensitive because more than one hundred S&P 500 companies will present their performance. Initial signs are encouraging since 80% of the firms that have released their numbers for this quarter have beaten forecasts.
The market is certain to be fairly volatile as it approaches Wednesday's Tesla (TSLA, Financial) earnings call, especially after last week's fairly poor showing from its Robotaxi reveal. This report is expected to broadly represent Big Tech, which otherwise kicked off earnings season on a high note, powered by Netflix's (NFLX, Financial) blowout quarter.
In other sectors, General Motors (GM, Financial), Coca-Cola (KO, Financial), and United Parcel Service (UPS, Financial) are also announcing their earnings, making this week exceptionally charged. US aerospace giant Boeing (BA, Financial) will report its quarterly earnings on Wednesday, along with the vote verdict to end a five-week strike if it arrives.
Also, the 10-year Treasury yield has ticked up to 4.136%, its highest level since July and further contributing to investors' discomfort. Oil and Chinese stocks increased as China continued its stimulus measures by reducing key lending rates. It remains uncertain what a decisive shift in the market depends on, but more information on Iran's conditions and global economic factors can undoubtedly influence the movement.
