As traders prepare to wrap out a gloomy month that saw Treasury rates spike to multiyear highs, the S&P 500 is little changed on Tuesday.
Greater index increased by 0.1%. The Nasdaq Composite and Dow Jones Industrial Average saw minimal changes.
The S&P 500 sector with the biggest decline, down around 0.6%, was information technology. Notably, Nvidia’s stock, which benefits from artificial intelligence, fell more than 2%, and Apple’s stock also declined.
Caterpillar reported third-quarter profits that surpassed projections on Tuesday, capping out the earnings season. Investors were concerned that Caterpillar may fall short of analysts’ projections when it revealed that its fourth-quarter revenue would only be “slightly” higher than it was a year earlier. More than 5% of the shares were down.
The airline’s third-quarter earnings fell short of forecasts on both the top and bottom lines, causing JetBlue’s shares to plunge by more than 14%.
It looks like stocks will drop for a third straight month. There has been a 2% and 3% decline in the Dow and S&P 500, respectively. Both indices have now seen a three-month losing run for the first time since March 2020. With over 3% of the market down thus far, the tech-heavy Nasdaq is headed for its third straight down month.
The losses coincide with an abrupt increase in Treasury yields. The benchmark 10-year U.S. Treasury yield crossed the crucial 5% threshold this month for the first time since 2007. Market players blame a number of things for the increase, including their anxiety that the Federal Reserve would maintain higher interest rates for an extended period of time.
The Federal Reserve is scheduled to announce its next interest rate decision on Wednesday. According to the CME FedWatch Tool, fed funds futures pricing indicates a 99% chance that the central bank will maintain current rates.
Source (CNBC)
