US stocks close higher ahead of earnings
US markets closed higher, with investors shifting their focus to next week, with third-quarter earnings season set to start and inflation data expected, which could shed light on the Federal Reserve's next policy decision. All three major US stock indexes advanced on the day, logging weekly gains. "It's the kind of back-and-forth market we've been in where we have the reversal of sentiment around…
US markets experienced a slight uptick, as investors shifted their attention to the upcoming third-quarter earnings season and inflation figures that could impact the Federal Reserve's policy decisions. All three major US stock indexes saw gains for the week. Analyst Ross Mayfield of Baird explained that the rally was uncertain due to conflicting news from the White House and Middle Eastern parties.
Crude prices initially fell after President Trump stated the US would not attack Iran before the midterm elections, but talks between the two nations were deemed productive. West Texas Intermediate oil and Brent crude both rose by 0.4 percent. Benchmark Treasury yields increased slightly but were still below a 24-year peak. Major US banks, including Wells Fargo, Goldman Sachs, Citigroup, JPMorgan Chase, Bank of America, and Morgan Stanley, are set to report earnings next week.
The University of Michigan reported a decline in consumer confidence, with near-term expectations hitting an all-time low. The Dow Jones Industrial Average gained 423.31 points (0.83 percent) to 51,654.95, while the S&P 500 rose 46.15 points (0.59 percent) to 7,811.54, and the Nasdaq Composite increased 172.83 points (0.64 percent) to 27,366.17.
AI-related stocks generally performed well, with the Roundhill Magnificent Seven ETF up 1 percent, marking the US bull market driven by the AI boom nearing its four-year anniversary. The story of semiconductors dominated the market, according to portfolio manager Michael Monaghan, as this technological shift is only in its early stages.
SpaceX secured a deal to acquire a nationwide low-band spectrum portfolio, challenging US wireless companies. Telecom firms T-Mobile US, AT&T, and Verizon dropped between 8.8 percent and 13.3 percent. Apple's stock fell 1.1 percent following reports that the company had instructed some suppliers to reduce production of components for its new iPhone 18 Pro and Pro Max models, as rising memory chip costs and price hikes dampen consumer demand.
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