U.S. stock market/ Wall Street banks rally/ Tesla stock decline/ bond market update/ inflation report/ China stimulus hopes/ Newslooks/ NEW YORK/ J. Mansour/ Morning Edition/ U.S. stocks held near record highs as positive earnings from major banks bolstered markets, despite Tesla’s 8.8% slide following its robotaxi reveal. Bond yields were mixed after the latest inflation data.
Wall Street Records Quick Looks
- Stock Performance: S&P 500 slightly up, Dow Jones gains, Nasdaq dips.
- Bank Earnings: Wells Fargo, JPMorgan Chase, and others beat expectations.
- Tesla Drop: Tesla shares fell 8.8% following limited details on robotaxi plans.
- Treasury Yields: Mixed reactions with 10-year yield rising to 4.09%.
- Global Impact: Shanghai stocks dropped ahead of China’s Finance Ministry briefing.
Wall Street Hovers Near Record Highs as Bank Earnings Impress
Deep Look
U.S. stock indices hovered near record highs Friday morning, bolstered by robust profit reports from leading banks, though Tesla’s sharp decline kept gains in check. The S&P 500 rose by 0.1%, a modest increase after Thursday’s near-record close, while the Dow Jones Industrial Average climbed 199 points, or 0.5%. Meanwhile, the Nasdaq composite fell 0.4% as Tesla’s disappointing update weighed on tech-heavy shares.
Wells Fargo surged 5.7% after reporting quarterly earnings that surpassed analysts’ expectations, buoyed by stronger investment returns and higher fees within its investment banking division. Other financial heavyweights like JPMorgan Chase, BlackRock, and Bank of New York Mellon also exceeded profit forecasts, pushing their stock prices higher and reinforcing investor optimism as earnings season kicks off.
The positive momentum in the financial sector helped counterbalance Tesla’s 8.8% slide. The electric vehicle maker revealed its much-anticipated robotaxi, nicknamed the “Cybercab,” during a Thursday evening event. However, critics noted the announcement lacked clear timelines or specific details on its rollout. CEO Elon Musk indicated that availability could start as early as 2026 but cautioned it might take until 2027, disappointing investors awaiting a lower-cost model update.
In the auto sector, Stellantis, which trades on European markets, also faced challenges, with shares dropping 4.6% after it announced a series of leadership changes, including the anticipated retirement of CEO Carlos Tavares. The automaker, which formed from the merger of PSA Peugeot and Fiat Chrysler, has been working to revitalize its North American sales, a task now shadowed by its CFO’s departure and uncertain market conditions.
In the bond market, Treasury yields were mixed following the latest producer price index (PPI) data, which showed wholesale prices 1.8% higher in September than the same time last year. Although this was an improvement from August, the pace fell short of economists’ expectations, leaving some inflation concerns in place. Analysts noted the report eased some fears from the previous day, when consumer inflation figures indicated a slower-than-expected cooling trend. Market data from CME Group indicated that traders remained confident the Federal Reserve will implement a quarter-point rate cut in November.
The yield on the 10-year Treasury bond rose to 4.09%, up from 4.07% on Thursday, reflecting some market apprehension, while the two-year Treasury yield slightly decreased to 3.95%.
Global markets also experienced fluctuations, with a 2.5% drop in Shanghai’s stock index. Investors are eyeing a scheduled Saturday briefing from China’s Finance Ministry, hoping it will announce substantial economic stimulus measures to invigorate the country’s slowing growth, a key concern for the world’s second-largest economy.
