Nasdaq 100 fell more than 2%; Treasuries Rise: Market Ends

The tech-heavy Nasdaq 100 fell more than 2% while the S&P 500 also fell. Sentiment eased after earnings from major companies including Microsoft Corp. and Alphabet, the parent company of Google, highlight how the tightening Fed, and therefore the strong dollar, is impacting the economy. Meta Platforms Inc., Amazon.com Inc. and Apple Inc. among the big companies still reporting this week.

Treasury yields fell, with 10-year yields falling to around 4.05%. A measure of the dollar fell on Monday to a three-week low.

Stocks have rallied in recent days on mostly steady earnings and expectations the Federal Reserve might curb the pace of interest rate hikes. About a quarter of S&P 500 companies reported third-quarter results, with more than two-thirds beating analyst estimates despite the tech industry’s massive debacle. But investors remain concerned that slowing output will dent the company’s profits in the coming months.

Mike Ingram, senior market strategist at ActivTrades, said on Bloomberg TV: “Yes, we are seeing earnings skyrocket at the moment. Next year will still look a bit tough. “

Strategists at Goldman Sachs Group Inc. said bottoming conditions for US stocks remain unclear as the asset class doesn’t fully reflect the latest gains in real yields and recession rates. In the event of a severe economic downturn, the Goldman team said it expects the S&P 500 index to drop to 2,888, which is a 25% drop from Tuesday’s close.

Meanwhile, sterling rallied after the government said a much-anticipated fiscal report would be delayed until November. Sterling recovered earlier after the appointment of new Prime Minister Rishi Sunak. an experienced Cabinet to lead the UK through what he calls “a deep economic crisis”.

Oil fell as an industry report showed an increase in US crude inventories and investors worried about weaker demand amid slowing growth. Gold rose on falling Treasury yields supported the precious metal. Bitcoin rallied for a second day.

Main events this week

• Earnings due this week include: Apple, Exxon Mobil, Ford Motor, Credit Suisse, Airbus, Amazon, Bank of China, Boeing, Caterpillar, Cnooc, Intel, McDonald’s, Merck, Samsung Electronics, Shell, Vale, Volkswagen
• ECB Rate Decision, Thursday
• US GDP, durable goods orders, initial jobless claims, Thursday
• Policy Decision of the Bank of Japan, Friday
• US personal income, personal spending, pending home sales, University of Michigan consumer sentiment, Friday

Some key moves in the market

Inventory

• The S&P 500 is down 0.9% as of 9:30 a.m. New York time
• Nasdaq 100 drops 2.2%
• The Dow Jones Industrial Average fell 0.1%
• Stoxx Europe 600 down 0.4%
• MSCI World Index up 1.6%

Currency

• Bloomberg Dollar Spot Index drops 0.5%
• The euro rose 0.4% to $1.0010
• British Pound rose 0.7% to $1.1556
• Japanese yen rose 0.5% to 147.15 per dollar

Electronic money

• Bitcoin up 1.3% to $20,461.5
• Ether rose 3.2% to $1,521.19

Bonds

• Yields on 10-year Treasuries fell six basis points to 4.04%
• German 10-year yield was little changed at 2.16%
• UK 10-year yield drops two basis points to 3.61%

Goods

• West Texas Intermediate crude rose 0.8% to $86.01 a barrel
• Gold futures rose 0.5% to $1,667.10 an ounce

This story has been published from the electronic agency’s feed with no modifications to the text.