- Stocks wavered and closed mixed on Tuesday.
- Doubts about the pace of rate cuts shook shook stocks and bonds earlier this week.
- Strong earnings continue, with Wall Street now focused on Tesla’s Wednesday report.
US indexes ended mixed on Tuesday as investors adjusted their outlooks for rate cuts for the rest of the year.
The S&P 500 and the Dow Jones Industrial Average dipped slightly, while the Nasdaq edged up.
The benchmark S&P 500 added to losses from Monday’s session, pulling back further from records notched last week as investors adjusted their outlooks for rate cuts. Commentary from several Fed officials outlining expectations for a modest rate-cutting cycle forced investors to recalibrate expectations of swift, steep rate cuts.
The bond market sold off Monday in response, and the 10-year Treasury yield jumped 11 basis points to hover at 4.2% on Tuesday. On Tuesday. That marks the key bond yield’s highest level in three-months.
Still, investors expect more rate cuts at coming meetings, and according to the CME FedWatch Tool, the odds of a quarter-point interest rate cut next month stand at 89.6%.
Meanwhile, earnings season has been mostly positive so far. Nearly one-fifth of S&P 500 companies have reported third-quarter results, and about 80% have beaten profit estimates by 5%, Bank of America said.
General Motors rose over 10% Tuesday after topping forecasts on Tuesday. Tesla and Boeing are scheduled to report on Wednesday, followed by UPS on Thursday.
Here’s where US indexes stood at the 4:00 p.m. closing bell on Tuesday:
Here’s what else happened today:
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil was up 2.38% to $72.24 a barrel. Brent crude, the international benchmark, jumped 2.23% to $75.94 a barrel.
- Gold was higher by 0.80% to $2,760.9 an ounce.
- The 10-year Treasury yield increased one basis point to 4.2%.
- Bitcoin shed 0.17% to $67,533.29.
Read More: Stock Market Today: Indexes Mixed As Investors Brace for More Earnings