S&P 500 to Test Record High in Buildup to Earnings: Markets Wrap
(Bloomberg) — US stock futures rose modestly as traders weighed the prospect of solid results in a busy week for corporate earnings against the risk of escalating tensions in the Middle East.
S&P 500 contracts climbed 0.2% after the index closed within a whisker of a record high last week. Brent crude swung between gains and losses amid resilient flows from the Persian Gulf and concerns over repeated Houthi attacks on Saudi Arabia from neighboring Yemen. Traders were also assessing President Donald Trump’s claim of an “energy ceasefire” between Russia and Ukraine.
Treasury futures edged higher, with the cash market closed for Columbus Day in the US. Bond yields fell slightly across Europe and Asia as well. The dollar was little changed.
Traders are gearing up for the unofficial start of earnings season, with Wall Street’s biggest banks expected to unveil a quarterly stock-trading haul of $19 billion. Artificial-intelligence heavyweights will also come under the spotlight later in the week when ASML Holding NV in Europe and Taiwan Semiconductor Manufacturing Co. report.
Goldman Sachs Group Inc. strategists including Christian Mueller-Glissman said in a note they turned overweight stocks for the next three months on expectations for strong earnings growth and a recent valuation derating.
“Double-digit earnings growth has so far helped offset the negative impact of higher rates,” said Vincent Juvyns, chief investment strategist at ING in Brussels. “The earnings season will be important in determining whether the bull market has further room to run.”
Later in the week, investors will look to US consumer-price data and a scheduled appearance by Federal Reserve Chair Kevin Warsh for clues on the pace of further rate increases.
A stronger-than-expected September inflation reading may rekindle the recent bond selloff by putting pressure on the Fed to tighten policy more aggressively. The 10-year Treasury yield approached 5.4% last week, its highest since 2002.
What Bloomberg’s Strategists Say…
“US equities are primed to make fresh highs this week as financials kick off third-quarter earnings season. Rising rates are placing a higher hurdle that most stocks are failing to clear, yet robust tech results should keep headline index momentum intact.”
— David Savage, Macro Squawk. Click here for the full analysis.
Some of the main moves in markets:
Stocks
The Stoxx Europe 600 rose 0.5% as of 8:26 a.m. London time S&P 500 futures rose 0.2% Nasdaq 100 futures rose 0.2% Futures on the Dow Jones Industrial Average rose 0.3% The MSCI Asia Pacific Index fell 0.4% The MSCI Emerging Markets Index fell 0.6% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1204 The Japanese yen was little changed at 158.42 per dollar The offshore yuan was little changed at 6.6930 per dollar The British pound was little changed at $1.3243 Cryptocurrencies
Bitcoin rose 0.6% to $84,040.29 Ether rose 1.3% to $2,569.72 Bonds
The yield on 10-year Treasuries was little changed at 5.24% Germany’s 10-year yield declined two basis points to 3.46% Britain’s 10-year yield declined three basis points to 5.42% Commodities
Brent crude fell 0.1% to $104.59 a barrel Spot gold fell 0.3% to $4,183.28 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Abhishek Vishnoi.
©2026 Bloomberg L.P.
