Stock market today: Dow, Nasdaq, S&P 500 recover from lows as Treasury yields hit highest level since July

Published On Oct 22, 2024, 2:39 PM

U.S. stocks fluctuated throughout the trading day, ultimately recovering from significant earlier losses. The Dow Jones and Nasdaq saw slight increases while concerns remain regarding the Federal Reserve's rate-cut strategy. GM raised its profit forecast, resulting in a share price surge of over 10%, while GE and Verizon shares dropped following weaker earnings reports. Walmart announced plans to roll out same-day prescription delivery, boosting its shares by 2%. With rising yields affecting rate-sensitive sectors and anticipation of Tesla's earnings report, investors are advised to navigate cautiously amid this volatile landscape.

Stock Forecasts

General Motors continues to perform well, recently raising its earnings guidance which points to strong demand for electric vehicles. The ongoing demand and operational efficiency improvements suggest positive momentum ahead for GM.

Walmart's entry into same-day prescription delivery positions it strategically to compete against online pharmacy giants, potentially boosting its market share in healthcare retail. Given the market's responsive behavior and the urgency in healthcare needs, Walmart is likely to see continued interest.

The uncertainty surrounding interest rates will likely pressure bond-sensitive sectors, including real estate, which could see continued volatility. Thus, investments in these sectors may be negatively impacted in the short term until clarity arises from Fed communications.

With elevated Treasury yields, there is likely to be a continued focus on energy stocks, which have performed well recently. The ongoing recovery in oil prices can further support this sector's strength, suggesting potential gains ahead for energy ETFs.

The upcoming earnings report from Tesla could lead to significant price movements in technology and automotive sectors, especially if results exceed expectations. However, if results disappoint or guidance is weak, this could negatively impact related stocks.

Related News

Walmart on Tuesday launched a pharmacy delivery service, allowing customers to get prescription drugs and general merchandise delivered in a single online cart.

Target is implementing price cuts on thousands of its in-house and national brand items in an effort to drive traffic at its stores and online during the holiday season.

TGT
WMT

Stocks are eyeing a second day of losses as investors rethink the outlook for interest-rate cuts over the next year.