The S&P 500 advanced 0.3% by midday in New York, extending its strong performance since April. The Dow Jones Industrial Average was flat, and the Nasdaq 100 rose 0.7%. The Bloomberg Magnificent 7 Total Return Index rose 1.5% as major technology companies led the way. Meanwhile, the Stoxx Europe 600 declined by 0.5%, while the MSCI World Index rose by 0.2%.
Market strategists noted that lower levels of volatility continue to support equities, even as the broader economic picture remains uncertain. Bloomberg strategist Michael Ball stated that while further gains in the S&P 500 may require new catalysts, a potential sustained decline in volatility should sustain momentum. The bond market experienced stability, with 10-year Treasury yields hovering around 4.10%.
Currency markets reflected modest movements. The Bloomberg Dollar Spot Index edged 0.1% higher. The euro and British pound each declined 0.2%, trading at $1.1540 and $1.3131 respectively, while the Japanese yen remained steady near 154.07 per dollar. In commodities, West Texas Intermediate crude rose 0.1% to $60.66 a barrel, and spot gold eased 0.3% to $4,012 an ounce.
Several major corporations posted strong third-quarter results, bolstering investor confidence. Apple Inc. projected higher sales for the holiday quarter, driven by new iPhone releases, despite concerns about slower revenue growth from China persisting. Amazon.com Inc. reported solid growth in its cloud division, easing fears about a slowdown in artificial intelligence investments. Nvidia Corp.’s CEO, Jensen Huang, stated that the company still aims to sell Blackwell chips to China in the future, although no immediate plans exist.
Energy giants Exxon Mobil Corp. and Chevron Corp. surpassed Wall Street expectations, helped by higher output from new oilfield projects and acquisitions. Coinbase Global Inc. also exceeded forecasts, with revenue boosted by rising crypto trading activity as Bitcoin and Ether reached new highs.
Colgate-Palmolive Co. reported stronger-than-expected earnings due to resilient demand in Latin America. AbbVie Inc. raised its annual forecast after robust sales of its anti-inflammatory drugs offset continued weakness in its aesthetics business. In contrast, Carlyle Group Inc. saw a decline in private equity earnings but benefited from steady performance in credit and secondary markets.
Roundhill Financial Inc. has filed to introduce the Roundhill USA Government Portfolio ETF, aiming to track the capital allocation of the US government under its industrial strategy. Furthermore, the proposed fund would align with government investments in strategic industries, including defense, critical minerals, and semiconductors. Treasury Secretary Scott Bessent said these investments are being made to decrease US dependence on China and build up domestic supply chains.
The ETF highlights a shift toward what analysts describe as “state capitalism,” as Washington takes a more direct role in markets. Interactive Brokers’ Steve Sosnick said the fund illustrates efforts to capitalize on the administration’s interventionist economic policies. Among the reported government holdings are stakes in Trilogy Metals Inc., MP Materials Corp., Lithium Americas Corp., United States Steel Corp., and Intel Corp.
Analysts have raised questions about the ETF’s potential returns, noting that many government positions become public only after prices have already moved. Despite skepticism about timing, proponents like Peter Tchir of Academy Securities argue that aligning with government spending priorities could be the next major investment theme, similar to the rise of ESG investing.
The ongoing enthusiasm for artificial intelligence continues to drive market leadership. UBS Global Wealth Management’s Mark Haefele stated that AI-related stocks remain key to equity performance and that underexposed investors should consider diversified exposure to the theme. Corporate commentary shows continued increases in AI-related capital expenditures, suggesting that the trend is expanding beyond the technology sector.
The S&P 500 has surged nearly 40% since April and is set for its longest monthly gain streak since 2021. Nasdaq 100’s seven-month rise marks its strongest run in eight years. Seasonal strength is expected to hold onto equities through the end of the year, as traders prefer large-cap technology stocks. Fundstrat's Thomas Lee said it is likely that strong corporate earnings and economic strength will continue to support US equities in Q4.
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