The S&P 500 bounced back on Thursday, breaking its three-day losing streak with a boost from a sharp rise in Tesla shares. The tech-heavy Nasdaq also moved higher, lifted by strong results from the electric vehicle maker, while the Dow continued to struggle, extending its losses into a fourth consecutive session. Despite ongoing concerns over higher interest rates, positive earnings from several companies helped shift market sentiment. In Europe, a mix of upbeat earnings and softer economic data set a cautious tone, while Asian markets grappled with mixed results and regional economic uncertainty.

Key Takeaways:

  • S&P 500 Ends Three-Day Losing Streak: The S&P 500 gained 0.21%, closing at 5,809.86, marking its first positive session in a week dominated by concerns over rising interest rates. Tesla’s strong performance helped lift the index, though broader earnings growth remains modest at 3.4% year-over-year.
  • Nasdaq Rises on Tesla Surge: The Nasdaq Composite jumped 0.76% to close at 18,415.49, with Tesla leading the gains. The electric vehicle maker’s stock surged nearly 22% after posting third-quarter results that exceeded analyst expectations, making it Tesla’s best trading day since 2013.
  • Dow Jones Extends Losses: The Dow Jones Industrial Average fell 140.59 points, or 0.33%, to 42,374.36, extending its losing streak to four days. This marks the index’s first such streak since June, with Boeing and IBM contributing to the declines after disappointing earnings results.
  • European Markets Mixed Amid Earnings and PMI Data: The pan-European Stoxx 600 edged up 0.06%, with the FTSE 100 adding 0.13% to close at 8,269.38. Germany’s DAX rose 0.34%, while France’s CAC 40 inched up 0.1% to 7,503. Renault’s stock surged 4.7% on an unexpected rise in third-quarter revenue, while Barclays gained 4.2% after posting better-than-expected earnings. Key PMI data added to market sentiment, with the Eurozone October Manufacturing PMI at 45.9, exceeding expectations of 45.1, but the Composite PMI came in slightly weaker at 49.7. France’s Services PMI fell short at 48.3, while Germany’s Services PMI was stronger than expected at 51.4, indicating a mixed outlook for the region.
  • Asian Markets Mostly Decline Amid Wall Street Weakness: South Korea’s Kospi fell 0.72% to 2,581.03, as the country narrowly avoided a technical recession with 0.1% GDP growth in Q3, missing estimates of 0.5%. Japan’s Nikkei 225 reversed earlier losses to gain 0.1%, closing at 38,143.29, while the broader Topix index dipped 0.05% to 2,635.57. China’s CSI 300 dropped 1.12% to 3,928.83, snapping a four-day winning streak, while Hong Kong’s Hang Seng index fell 1.35%, influenced by losses in the tech sector. Horizon Robotics made its trading debut in Hong Kong, surging as much as 37.8% before paring gains to close 6.26% above its IPO price.
  • Oil Prices Slide Amid Economic Uncertainty: Oil prices declined nearly 1% on Thursday, as concerns about slow economic growth in Europe and uncertainty around the Middle East conflict weighed on demand expectations. Brent crude slipped 0.35%, settling at $74.70 per barrel, while West Texas Intermediate (WTI) also fell 0.37% to close at $70.50 per barrel. The market remains volatile as traders adjust their positions amid shifting geopolitical risks, especially following reports that Iran’s oil exports are on track to reach 1.5 million barrels per day in 2024, up from 1.4 million barrels per day in 2023.
  • 10-Year Treasury Yield Pulls Back from Recent Highs: The yield on the 10-year Treasury eased more than 3 basis points to 4.208% after reaching a three-month high of 4.25% on Wednesday. The slight decline followed the release of better-than-expected initial jobless claims data, which came in at 227,000, below estimates of 245,000. Despite the recent dip, yields remain elevated, reflecting ongoing market concerns about the Federal Reserve’s interest rate policy and its impact on economic growth.

FX Today:

  • EUR/USD Struggles to Break Out of Bearish Trend: EUR/USD managed a slight rise to close at 1.0826, attempting to recover from its recent downward pressure. However, the pair’s gains remain capped by key resistance around the 50-period SMA at 1.0842. Despite some positive momentum, EUR/USD remains below both the 100-period and 200-period SMAs, suggesting that bearish pressure could persist in the near term. Traders are eyeing a possible test of the 1.0900 level if the pair manages to break through current resistance. On the downside, a failure to hold recent gains could see renewed selling pressure, with support expected near 1.0794.
  • GBP/USD Seeks Direction as Key Support Holds: The British Pound saw a measured bounce, closing at 1.2975, as it found support above the crucial 200-period SMA level at 1.3058. The pair remains sandwiched between this key support and resistance around the 100-period SMA, suggesting a period of consolidation. A break above 1.3007 could open the door to a more sustained recovery, but if GBP/USD loses footing below 1.2900, further declines toward 1.2850 may be in sight. The market remains finely balanced as traders assess the impact of UK fiscal changes and the broader economic landscape.
  • USD/CHF Stuck in a Narrow Band Amid Yield Fluctuations: USD/CHF closed the day nearly flat at 0.8659, as it continued to trade within a tight range. With resistance at 0.8661 and support around 0.8648, the pair seems to be waiting for a catalyst to break out of this consolidation phase. The 100-period SMA just above current levels could act as a ceiling for any upward moves, while a drop below the 50-period SMA could see the pair testing deeper support at 0.8603. Traders are watching for any shifts in US Treasury yields or broader risk sentiment that might provide direction.
  • AUD/USD Remains Soft Despite Slight Uptick: AUD/USD ticked up to close at 0.6640 after dipping earlier in the session. The pair has found some footing above 0.6600, but downward pressure persists due to the bearish alignment of the 50-period and 100-period SMAs. A move back above 0.6682 could signal some recovery, though resistance around 0.6700 could temper any rally. Meanwhile, a drop below 0.6600 might accelerate selling, with the next support target near 0.6550. Traders remain cautious amid mixed signals from the US dollar and the broader economic outlook.
  • Gold Takes a Breather as Yields Ease: Gold prices closed slightly lower at $2,735.14, pulling back from intraday highs near $2,737.78. The precious metal’s retreat came as traders booked profits following its recent rally. Despite the dip, gold remains supported by the 50-period SMA at $2,704.88, which continues to provide a floor for prices. If gold breaks through the recent high, it could target $2,750 as the next resistance level. However, if it slips below the 50-period SMA, further downside might test support near $2,673.15. With US Treasury yields easing slightly, the market remains on edge, looking for signs of a more definitive trend.

Market Movers:

  • Tesla Surges on Earnings Beat: Tesla shares skyrocketed nearly 22% after the electric vehicle maker reported third-quarter results that surpassed analyst expectations, marking its best day since 2013. CEO Elon Musk’s optimistic forecast of 20% to 30% vehicle growth in 2025 further fuelled investor enthusiasm, lifting the broader market and helping the Nasdaq post a solid gain of 0.76%.
  • Newmont Tumbles on Earnings Miss: Newmont shares plunged 15% after the mining giant posted weaker-than-expected third-quarter earnings. The company reported adjusted earnings of $0.81 per share, falling short of the anticipated $0.86 per share. Revenue also disappointed at $4.61 billion, below the forecasted $4.67 billion, triggering a sell-off in the stock.
  • Molina Healthcare Rallies on Strong Results: Molina Healthcare shares jumped 18% following its latest earnings report, which exceeded market expectations. The managed care company posted adjusted earnings of $6.01 per share, beating the LSEG consensus estimate of $5.81. Revenue came in strong at $10.34 billion, outpacing forecasts of $9.91 billion.
  • Whirlpool Pops on Earnings Beat: Shares of Whirlpool surged about 11% after the home appliance company reported adjusted third-quarter earnings of $3.43 per share, surpassing the $3.19 per share expected by analysts polled by LSEG. The positive results helped offset concerns about the broader consumer discretionary sector.
  • QuantumScape Soars After Meeting Expectations: QuantumScape shares jumped 25% after the battery manufacturer reported third-quarter results that matched analyst expectations, according to FactSet. Despite posting a loss per share of $0.23, the company’s announcement of beginning production of low volumes of its first B-sample cells excited investors, driving the stock higher.
  • West Pharmaceutical Services Soars on Strong Results: West Pharmaceutical Services’ stock jumped 15% after the company reported third-quarter adjusted earnings of $1.85 per share, outpacing the $1.50 per share anticipated by analysts. Revenue also beat expectations, coming in at $746.9 million against the $709.6 million forecasted, according to FactSet.
  • Lilium Plummets as Insolvency Looms: Shares of German air taxi startup Lilium plunged 62% after the company announced that its two main subsidiaries would file for insolvency in the coming days. The stock, which is classified as a penny stock, traded around the 25-cent mark in afternoon trading, reflecting investor concerns about the company’s financial stability.

As the trading week nears its end, markets remain caught between mixed earnings results and persistent economic uncertainties. The S&P 500 managed to snap a three-day losing streak with help from Tesla’s standout performance, while the Dow extended its losses to a fourth day, highlighting the ongoing pressure from higher interest rates. European stocks posted modest gains, supported by upbeat earnings from Renault and Barclays, but were tempered by weaker PMI data in France and the broader Eurozone. Meanwhile, Asian markets faced a largely negative session, with South Korea narrowly avoiding a technical recession, and oil prices dipped as concerns over global growth persisted. With the 10-year Treasury yield easing slightly after recent highs, investor focus now shifts to potential signals from economic data and geopolitical developments for clues on the market’s next direction.