S&P 500 and Dow close lower amid interest rate concerns

The S&P 500 and the Dow Jones Industrial Average finished Tuesday marginally lower, as investors grappled with ongoing concerns about a potential rise in interest rates and processed this week’s latest earnings reports.

The S&P 500 closed down 0.05 per cent, finishing at 5,851.20. This marked the broad market index's first consecutive loss since early September. The Dow slipped 6.71 points, or 0.02 per cent, ending at 42,924.89, also experiencing its second straight losing day. In contrast, the Nasdaq Composite outperformed with a gain of 0.18 per cent, closing at 18,573.13.

Earlier in the day, the yield on the U.S. 10-year Treasury note rose above 4.2 per cent for the first time in about three months before retreating slightly. Cautious remarks from Federal Reserve officials regarding the timeline for interest rate cuts have contributed to the increase in yields.

Homebuilding stocks fell due to ongoing concerns about prolonged high rates, with Lennar and D.R. Horton each declining by more than 3 per cent.

Traders are closely watching a new round of earnings reports set to be released this week, including Tesla and Coca-Cola on Wednesday and Honeywell on Thursday.

So far, about one-fifth of S&P 500 companies have reported their results, with the majority exceeding earnings expectations, according to FactSet.

Looking at the S&P 500 sectors, the performance was mixed. Consumer Staples emerged as the top performer, while Industrials lagged behind.

In company news, General Motors surged nearly 10 per cent after surpassing Wall Street’s third-quarter expectations and raising its full-year guidance. Philip Morris also jumped roughly 10 per cent after increasing its annual profit forecast, while Verizon fell 5 per cent after its total revenue narrowly missed analysts’ expectations. Lockheed Martin shares dropped 6 per cent following lower-than-expected quarterly sales.

Futures

The SPI futures are pointing to a 0.3 per cent gain

Currency

One Australian dollar at 7.50am was buying 66.82 US cents.

Commodities

Gold added 0.84 per cent. Silver gained 2.82 per cent. Copper rose 0.61 per cent. Oil jumped 2.17 per cent.

Figures around the globe

European markets closed lower. London’s FTSE fell 0.14 per cent, Frankfurt lost 0.20 per cent, and Paris closed 0.01 per cent lower.

Turning to Asian markets, Tokyo’s Nikkei fell 1.39 per cent , while Hong Kong’s Hang Seng added 0.10 per cent and China’s Shanghai Composite added 0.54 per cent.

Yesterday, the Australian share market closed 1.66 per cent lower at 8206.

Dividends payable

Perenti Ltd (ASX:PRN)
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Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.

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