Wall Street posts weekly gains with earnings, inflation data on tap

On October 9, Wall Street experienced weekly gains as investors turned their attention to upcoming third-quarter earnings and inflation data. All three major US stock indexes saw increases, with the small-cap Russell 2000 finishing lower than its October 2 close. Analyst Ross Mayfield explained the market's volatility, attributing it to conflicting headlines, particularly regarding Iran.

Crude oil prices initially fell after President Trump stated the US wouldn't launch attacks on Iran before the midterm elections, but later rose by 0.4%. Treasury yields ticked up, yet remained below their 24-year high from October 7. For the July-September quarter, analysts expect S&P 500 earnings growth of 30.6%, with energy and tech leading at 123% and 66.5%, respectively.

American consumer sentiment dipped to an all-time low this month, with near-term expectations also declining. The Dow Jones Industrial Average rose 0.83% to 51,654.95, the S&P 500 gained 0.59% to 7,811.51, and the Nasdaq Composite increased 0.64% to 27,366.17. Among the 11 major S&P 500 sectors, communication services was the only loser.

AI-related momentum stocks, such as those in the Roundhill Magnificent Seven ETF, generally rose. SpaceX and Elon Musk's acquisition of low-band spectrum posed a challenge to US wireless companies. Telecom giants T-Mobile US, AT&T, and Verizon experienced declines. Among S&P 500 constituents, Apple dropped 1.1% due to potential production cuts of iPhone 18 Pro and iPhone 18 Pro Max components.

Advancing issues outnumbered decliners on both the NYSE and Nasdaq, with 141 new highs and 183 new lows on the former, and 2,756 stocks rising versus 1,997 falling on the Nasdaq.