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Global markets showed mixed performance on Tuesday as investors prepared for upcoming US inflation data and continued to assess third-quarter earnings. The S&P 500 rose 0.2% as of mid-morning in New York, hovering near record highs after its most substantial two-day advance since June. The Dow Jones Industrial Average gained 0.7%, while the NASDAQ 100 was little changed.
In Europe, the Stoxx 600 Index increased by 0.2%, and the MSCI World Index was unchanged. Even though parts of the market were taking profits, the overall market sentiment remained strong as market players adjusted their positions ahead of major economic reports.
Currency markets reflected a shift toward safer assets. The Bloomberg Dollar Spot Index gained 0.3%, supported by expectations of steady interest rates. The euro slipped 0.3% to $1.1604, the pound fell 0.2% to $1.3372, and the yen weakened 0.7% to 151.87 per dollar. Bitcoin rose 1.1% to $112,327.79, and Ether increased 0.6% to $ 4,024.90, marking a gradual recovery in the cryptocurrency market.
Gold suffered its steepest drop in five years, plunging 5.1% to $4,135.92 an ounce as a rising dollar dampened demand for the metal. Analysts said the decline followed an overextended rally, suggesting potential consolidation in the near term. The move also highlighted growing investor preference for yield-bearing assets amid global uncertainty.
In bond markets, US Treasury yields edged lower, reflecting renewed demand for government debt. The 10-year Treasury yield fell three basis points to 3.95%, while the 2-year yield slipped one basis point to 3.44%. Germany’s 10-year yield declined to 2.55%, and Britain’s equivalent dropped to 4.48%.
Analysts noted that falling oil prices could push benchmark yields lower, easing inflation pressures. West Texas Intermediate crude declined 0.3% to $57.33 a barrel, signaling concerns over slowing demand.
Corporate earnings still influenced equity movements. Strong pickup truck sales propelled General Motors up 13% following an increase in its outlook for the coming year. The industrial and consumer discretionary sectors were also boosted, with notable companies such as Coca-Cola, General Electric, and 3M recording results that exceeded market expectations.
RTX Corp. and Northrop Grumman advanced after both lifted their profit forecasts, while Zions Bancorp’s stronger earnings helped ease banking sector concerns.
In contrast, Newmont Corp. dropped 8.4% as gold miners fell in response to lower metal prices. PulteGroup declined after cautioning about weaker buyer demand, while Lockheed Martin also traded lower following disappointing results. Medical-device maker Hologic gained 3.6% after announcing its acquisition by Blackstone and TPG for up to $18.3 billion, including debt.
Analysts expect equities to consolidate after recent gains as investors await the Federal Reserve’s rate decision on October 29. Market strategists cited strong equity positioning and solid earnings momentum as signs of resilience despite ongoing geopolitical and economic risks.
Additionally, falling oil prices and easing inflation pressures may provide further support for bond markets and consumer spending, helping stabilize broader financial conditions in the weeks ahead.
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