Wall Street traders betting on a solid earnings season sent stocks to a striking distance of their all-time highs despite lingering concerns about elevated energy prices and bond yields.
Most firms in the S&P 500 rose, though chipmakers fell again. US oil eased after its settlement as President Donald Trump said Russian leader Vladimir Putin had agreed to release diesel supplies into the global market. The Treasury cash market will close Monday for Columbus Day. The dollar was set for its longest weekly advance since early 2025.
Corporate America is now navigating one of the strongest profit cycles in recent history, with the S&P 500 posting seven consecutive quarters of double-digit earnings growth. And investors want to see the momentum continuing.
“I believe corporate earnings remain remarkably strong,” said Bob Edwards at Edwards Asset Management.
Geopolitical clashes, rising yields and AI investment jitters have all contributed to trader anxiety. But earnings expectations remain robust, and the eventual resolution of the November election uncertainty could provide another catalyst for equities, he noted.
At Edward Jones, James McCann said robust earnings growth across a range of sectors has helped drive equity returns this year and should continue to support market performance. Analysts expect a roughly 25% increase in third-quarter S&P 500 profits from a year earlier, according to data compiled by Bloomberg Intelligence.
“Earnings and AI investment remain powerful supports for growth stocks, but high long-term rates, energy-driven inflation risk and narrow breadth leave less room for disappointment,” said Mark Hackett at Nationwide. “With valuations, sentiment and positioning having reset following a prolonged sideways move, there are reasons for optimism.”
Wall Street’s biggest banks are expected to unveil a quarterly stock-trading haul of nearly $19 billion when the firms report earnings next week.
Goldman Sachs Group Inc., which reports Tuesday, is expected to lead the pack with stock-trading revenue of $5.1 billion, followed by Morgan Stanley with $4.9 billion, according to analyst estimates compiled by Bloomberg as of the close of New York markets Thursday. Analysts are forecasting a $4.5 billion haul from JPMorgan Chase & Co. and $2.6 billion of revenue from Bank of America Corp.’s equity traders.
Just ahead of next week’s key inflation figures, data showed consumer sentiment fell in early October and views of current economic conditions hit an all-time low as gasoline prices remained elevated, borrowing costs rose and hiring slowed.
Corporate Highlights:
- OpenAI · is expecting to reach or exceed $70 billion in annualized revenue by the end of the year, according to people familiar with the matter, driven largely by growth in its enterprise business.
- SpaceX · is closing in on a crucial swath of spectrum needed to turn Elon Musk’s rocket, satellite and AI company into a “major mobile carrier,” setting the stage for a clash with stalwarts like T-Mobile US Inc., Verizon Communications Inc. and AT&T Inc.
- Apple Inc. fell after a report that the company cut component orders for the iPhone 18 Pro and iPhone 18 Pro Max following weaker-than-expected demand.
- Lumentum Holdings Inc. · ’s optical components are “completely sold out” through early 2029 on demand from tech companies clamoring for faster AI data centers, according to its chief executive officer.
- Delta Air Lines Inc. · reduced its full-year earnings outlook as jet fuel prices remain elevated, signaling mounting pressure on an airline industry whose smaller players are even less equipped to weather spiraling costs.
- Humana Inc. jumped as the company improved its performance on crucial Medicare Advantage quality ratings that will boost future revenue.
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Some of the main moves in markets:
Stocks
- The S&P 500 rose 0.7% as of 3:04 p.m. New York time
- The Nasdaq 100 rose 0.5%
- The Dow Jones Industrial Average rose 1%
- The MSCI World Index rose 0.7%
Currencies
- The Bloomberg Dollar Spot Index rose 0.1%
- The euro was little changed at $1.1203
- The British pound rose 0.1% to $1.3242
- The Japanese yen fell 0.2% to 158.21 per dollar
Cryptocurrencies
- Bitcoin rose 0.8% to $82,435.62
- Ether rose 0.4% to $2,483.53
Bonds
- The yield on 10-year Treasuries advanced two basis points to 5.24%
- Germany’s 10-year yield declined one basis point to 3.48%
- Britain’s 10-year yield declined four basis points to 5.44%
Commodities
- West Texas Intermediate crude fell 0.4% to $91.08 a barrel
- Spot gold rose 1.6% to $4,200.46 an ounce