Cap-weighted S&P 500 outperformed equal-weighted S&P 500 by 0.7% in October … follows three consecutive down months (which hadn’t happened since end of 2022 into start of 2023)
[Past performance is no guarantee of future results] pic.twitter.com/R12EGO1VgZ— Liz Ann Sonders (@LizAnnSonders) November 4, 2024
The Dow Jones Industrial Average and S&P 500 ended significantly lower on Wednesday, marking their third consecutive session in the red. Stock indices dropped as investors were concerned about rising Treasury yields and the potential outcomes of the upcoming November presidential election. The Dow dropped by 409.94 points, or almost 1%, closing at 42,514.95.
This marked the Dow’s biggest one-day decline since September 6. Earlier in the session, it had dropped as much as 631.72 points. The S&P 500 closed down by 53.78 points, or 0.9%, ending at 5,797.42, its worst performance since October 7.
Sensex Today | Stock Market LIVE Updates: Sensex recovers 600 points off day's low, Nifty reclaims 24K#Sensex #StockMarket #Nifty https://t.co/Xt4auOtFQz
— ET NOW (@ETNOWlive) November 4, 2024
China Stock Market: Goldman Sachs sees 20% upside; Vijay Kedia too BULLISH – Here's whyhttps://t.co/LlV1OuHwiw
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The Nasdaq Composite ended the day down by 296.47 points, or 1.6%, at 18,276.65, reaching its lowest level since October 8. Market drops were largely attributed to climbing Treasury yields and uncertainties surrounding the upcoming U.S. presidential election. George Cipolloni, a portfolio manager at Penn Mutual Asset Management, noted that stocks were priced high, raising the bar for impressive earnings results, especially ahead of earnings season.
TTM S&P 500 operating earnings are on pace to hit another record high in Q3, up 8% over the last year. $SPX
Video: https://t.co/S6Zqc3Gx4O pic.twitter.com/83ePxGl1nj
— Charlie Bilello (@charliebilello) November 3, 2024
Stock indices drop amid yield surge
Concerns were further exacerbated by the Cboe Volatility Index, commonly known as the market’s “fear gauge,” showing increased uncertainty. Additionally, rising Treasury yields have contributed to anxiety over the bond market’s volatility.
The Roundhill Magnificent Seven ETF, which includes giants like Apple Inc., Microsoft Corp., Alphabet Inc., and Amazon.com Inc., saw a decline of more than 2%. AT&T Inc. witnessed an impressive rise, with stock prices climbing 4.5%, reaching their highest level since May 2021.
West Texas Intermediate crude futures for December delivery fell 97 cents, settling at $70.77 a barrel, while December Brent crude dropped $1.08 to $74.96 a barrel. McDonald’s Corp saw pressure on its bond spreads due to an E. coli outbreak linked to its Quarter Pounder hamburgers.
Michael Reinking, a senior market strategist at the New York Stock Exchange, commented, “The uptick in yields and the USD rally have been top of mind for investors.” Peter Cardillo, chief market economist at Spartan Capital Securities, added, “With the election approaching, uncertainty is only likely to increase.”
Overall, U.S. stocks experienced a rough patch on Wednesday as financial markets grappled with rising Treasury yields and election-related uncertainties. Investors will be closely watching economic indicators and corporate earnings in the coming weeks to gauge the next market moves.
