On Friday, the S&P 500 and Nasdaq dropped due to weak consumer sentiment data and escalating conflict in the Middle East. Despite positive quarterly earnings from some of the largest U.S. banks, investors became cautious and turned away from riskier investments. The preliminary reading on U.S. consumer sentiment showed a significant decline in October, causing Wall Street’s major indexes to lose ground. Additionally, ongoing tensions in the Middle East between Israel and Hamas added to investor concerns. As a result, U.S. Treasury prices rose as investors sought safer investments, and the price of U.S. crude oil increased by over 5%. While it is anticipated that market narratives may shift in the coming months, analysts do not predict a troubled market unless there is a significant escalation in the Middle East conflict.
Despite the decline in the S&P 500 and Nasdaq, the Dow Jones Industrial Average saw a slight increase, and both the Dow and S&P 500 were on track for weekly gains. Among the S&P’s major industry sectors, energy led the gains, primarily driven by the rise in oil prices. Defensive sectors like utilities were also top gainers. Furthermore, safe-haven assets such as gold rallied. Meanwhile, shares in JPMorgan Chase, Wells Fargo, and Citigroup rose after their quarterly profits surpassed analysts’ expectations, partly due to higher interest rates. However, even the S&P 500 Banks index pared its gains as the session progressed. Federal Reserve Bank of Philadelphia President Patrick Harker stated that he believes the central bank has likely completed its rate-hiking cycle as inflation pressures have eased. Overall, the market remains uncertain, and investors are monitoring various factors such as economic data, geopolitical concerns, and the Middle East conflict.
In terms of individual stocks, asset manager BlackRock experienced a dip in third-quarter net inflows, leading to a slight decrease in its stock price. On the other hand, UnitedHealth saw a 2.5% increase in its stock price after beating third-quarter profit estimates. Dollar General also saw a significant boost, with an 8% increase in its stock price, after bringing back former CEO Todd Vasos. However, Boeing’s stock price dropped by 3% as the planemaker and Spirit AeroSystems expanded their inspections of a production defect affecting 737 Max 8 aircraft. Overall, declining issues outnumbered advancing ones, indicating a cautious sentiment among investors. The market continues to face uncertainties and fluctuations as various economic and geopolitical factors unfold.
