U.S. equities started on a positive note as the market anticipates Federal Reserve Chairman Jerome Powell’s significant speech while investors sift through new earnings reports.
Soon after the market opened, the Dow Jones Industrial Average advanced by 24.65 points or 0.1%, reaching 33,689.73. The S&P 500 increased by 5.08 points or 0.1% to 4,319.68, and the Nasdaq Composite rose by 40.05 points or 0.3% to 13,354.36.
The market is eagerly awaiting Powell’s upcoming address, which could be pivotal in terms of policy direction. There’s speculation about him taking a stern stance on inflation.
If Powell leans hawkish, bond yields, especially the 10-year Treasury nearing 5%, could surge, potentially destabilizing the delicate equity market.
Notable stock movements include VMWare, which declined 5.1%. This comes after the Financial Times disclosed that Beijing might delay Broadcom’s $69 billion takeover of the software firm. This move could be a response to recent U.S. restrictions limiting China’s access to high-end semiconductors.
Netflix saw a significant uptick of 14.4% post its robust earnings release, whereas Tesla experienced a dip of 6.0% after its financial results and a less favourable analyst interaction.
Meanwhile, Philip Morris saw a decline of 2.2% post-earnings, while AT&T exhibited growth due to raised free cash flow and EBITDA projections, coupled with impressive Q3 figures.
