Wall Street/ stock market/ S&P 500/ AT&T/ Tesla/ U.S. Steel/ trade tensions/ Treasury yields/ NEW YORK/ Newslooks/ J. Mansour/ Morning Edition/ U.S. stocks eased near record highs Tuesday, with the S&P 500 dipping 0.1% after Monday’s rally. AT&T led gains with a 4.3% surge, while U.S. Steel fell amid geopolitical concerns. Treasury yields steadied, as markets anticipated key job data influencing the Federal Reserve’s next moves.
Wall Street Slows: Quick Looks
- S&P 500: Down 0.1%, following Monday’s record-setting session.
- Nasdaq: Slight uptick, building on its previous day’s record.
- AT&T: Shares rose 4.3% on strong profit forecasts and buyback plans.
- U.S. Steel: Dropped 8.6% after opposition to its acquisition by Japan’s Nippon Steel.
- Tesla: Slipped 1% after a court reaffirmed rescinding Elon Musk’s pay package.
- Treasury Yields: 10-year yield dipped slightly to 4.18%.
- China Trade: Tensions escalated with export bans on critical materials.
Stocks Drift Near Records Amid Mixed Market Movements
Deep Look
Wall Street’s recent rally showed signs of moderation on Tuesday as the S&P 500 edged 0.1% lower after reaching record highs the day before. The Nasdaq composite rose by 0.1%, while the Dow Jones Industrial Average shed 79 points, or 0.2%. Despite the slight slowdown, the market remains on track for one of its strongest years since 2000, driven by tech stocks and resilient economic indicators.
Market Movers: AT&T and U.S. Steel
AT&T stood out with a 4.3% gain following an announcement to boost investor returns. The company raised its profit forecast and committed to a $10 billion stock buyback initiative, with plans for another $10 billion in repurchases by 2027. Conversely, U.S. Steel plummeted 8.6% after President-elect Donald Trump reiterated his opposition to Japan’s Nippon Steel acquiring the Pittsburgh-based company. The $14.1 billion deal has sparked debate over its potential impact on American workers and national security. Earlier, President Biden had also voiced objections.
Tesla’s Legal Setback
Tesla shares dipped 1% after a Delaware judge upheld a prior ruling to rescind CEO Elon Musk’s multibillion-dollar pay package. The decision adds legal uncertainty for the electric vehicle giant, which has been under scrutiny for corporate governance issues.
Treasury Yields and Economic Signals
Treasury yields remained stable, with the 10-year yield slightly lower at 4.18%. A labor market report indicated an increase in job openings for October, reinforcing hopes that the economy can avoid a recession despite earlier predictions. Market sentiment suggests a 70% probability of the Federal Reserve reducing interest rates in its upcoming meeting, which could boost economic activity while stoking inflation concerns.
Global Trade Tensions and Geopolitical Moves
U.S.-China trade relations worsened as China announced export bans on critical materials like gallium and germanium, retaliating against expanded U.S. restrictions on Chinese tech firms. The U.S. recently added 140 Chinese companies to its export control list, targeting chipmaking and high-tech industries with military applications.
International Market Highlights
Global markets showed mixed results. France’s CAC 40 rose 0.1%, while Japan’s Nikkei 225 surged 1.9%, buoyed by speculation that Japanese stocks could benefit from higher tariffs on China. In Asia, Hong Kong gained 1% and Shanghai rose 0.4% amid unconfirmed reports of potential economic stimulus discussions by Chinese leaders. South Korea’s Kospi index increased 1.9%, although the country’s currency fell sharply following its president’s declaration of martial law.
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