By Swann Collins, investor, writer and consultant in international affairs – Eurasia Business News. October 7, 2024. Article no 1252.

U.S. stock markets are experiencing a downturn as the S&P 500 slipped by 0.6% in afternoon trading on Monday, October 7, 2024. This decline comes amid rising Treasury yields, with the yield on the 10-year U.S. Treasury note climbing above 4%, reaching approximately 4.028% from 3.980% on Friday.

The U.S. employment data showed the U.S. economy is ticking along nicely, suggesting that future rate cuts are unlikely to be rapid.

With a new week underway, third-quarter earnings season is coming into view. Among the first big-name companies to report will be soda-and-snacks heavyweight PepsiCo on Tuesday. Earnings season will pick up pace Friday with reports from JPMorgan, Wells Fargo and others.

Key Factors Influencing the Market

Interest Rates: The increase in Treasury yields reflects changing expectations regarding interest rates. Following a robust jobs report last week, traders are reassessing their outlook on future rate cuts by the Federal Reserve, contributing to this rise in yields.

Economic Indicators: Despite the slip in stock prices, recent economic data, including a strong labor market report showing an addition of 254,000 jobs in September, has led to optimism about economic resilience. This has created a complex backdrop where positive economic indicators coexist with rising yields and geopolitical tensions.

Geopolitical Concerns: Investor sentiment is also being affected by escalating tensions in the Middle East, which are adding to market volatility and risk aversion among investors.

Market Performance Overview

S&P 500 and Dow : The S&P 500 was down 0.6% in afternoon. The Dow Jones Industrial Average was down 502 points, or 1.2%, coming off its own record. The Nasdaq composite was 1.2% lower, with an hour remaining in trading.

10-Year Treasury Yield: Up to approximately 4.028%

Recent Job Report: Added 254,000 jobs in September, exceeding expectations.

Major stock indexes climbed overseas. Benchmarks in Japan and South Korea both adding more than 1.5%. The Stoxx Europe 600 edged higher.

Read also : Gold : Build Your Wealth and Freedom

Among individual stocks, Pfizer shares gained after activist Starboard Value took a stake, while Arcadium Lithium soared on a potential takeover by global miner Rio Tinto.

Gold prices are near steady and silver prices lower in early U.S. trading Monday. The Middle East geopolitical situation is keeping a floor under the gold and silver markets as tensions remain elevated to start the trading week. December gold was last down $0.20 at $2,667.60 and December silver was down $0.509 at $31.885. Now is a window to buy gold. Gold is a long-term store of value and this storage capacity is standardized internationally. Each troy ounce of gold has the same value. The yellow metal is an asset with intrinsic value in itself, capable of maintaining its purchasing power throughout the centuries and around the world.

China’s gold reserves unchanged for fifth straight month in September. China’s gold holdings stood at 72.8 million troy ounces at the end of last month. The value of the gold reserves, however, rose to $191.47 billion from $182.98 billion at the end of August. Global central banks, which actively bought gold in 2022-2023, are on track to slow purchases in 2024 from 2023, according to the World Gold Council, but to keep them above the pre-2022 level.

This combination of factors is resulting in cautious trading as investors navigate both economic data and geopolitical uncertainties.

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© Copyright 2024 – Eurasia Business News. Article no. 1252.