Strong corporate performance boosts U.S. stocks to record highs financial market news

As stocks soar, traders are preparing for market volatility under pressure from rising prices.

Driven by a series of strong corporate performance and good news in the fight against the virus, the US stock market rose to its first all-time high since September 2.

Sentiment deteriorated after the cash trading session, when Snap Inc. plummeted more than 25% after reporting that it did not meet the expected results. Apple’s new data collection restrictions and their impact on digital advertising measurement put pressure on Snapchat app owners. Major exchange-traded funds that track the Nasdaq 100 index fell by 06.% as other social media stocks fell after the market, with Facebook Inc. and Twitter Inc. both falling 6%. Alphabet Inc. fell nearly 3%.

Intel also fell after the announcement of its results, helping to cover up the late gains, which caused the S&P 500 index to rise 0.3% for the seventh time in a row, the longest gain since July. After Tesla, Pool Corp. and Tractor Supply Co.’s earnings were better than expected, stocks benefiting from the strong economy rose.

The rally during the regular trading period ended the longest drought since November 2020 and did not set a record close. Since JPMorgan Chase began reporting the quarter, the S&P 500 index has risen 5% after a month of losses. The steady rise of the stock market caused the Cboe Volatility Index to fall to its lowest closing point before the pandemic.

Liz Young, head of investment strategy at SoFi, said on Bloomberg’s “QuickTake Stock” streaming program: “I think it’s okay for investors to pay attention to returns and carefully check returns.” The policy-driven market is shifting to a market driven by fundamentals.”

As more and more investors lose confidence in the Fed’s statement that price increases will be “temporary”, the market’s expectations for US inflation in the next five years have soared to the highest level in 15 years.

The five-year U.S. Treasury bond yield climbed above 1.21%, the highest level since February 2020, as traders increased their bets that the Fed might tighten policy sooner than expected. The robust economic report on Thursday also strengthened forecasts. The latest report on initial jobless claims dropped unexpectedly to the lowest level since March 2020. Second-hand housing sales in the United States also recorded the largest increase in a year in September.

At the same time, congressional Democrats disagree on the taxation and spending of President Joe Biden’s economic plan.

Mike Loewengart, managing director of investment strategy at E*Trade Financial, said: “Good work coupled with high inflation has produced a major dichotomy to the Fed’s easing stance.” “If we see more of this momentum, easing or even raising interest rates. It may start to accelerate, which in turn may have an adverse effect on the market.”

As the stock is at a high level, traders are prepared to deal with market fluctuations while paying close attention to the company’s profit margins, pricing power and prospects.

Steve Chiavarone, vice president and general manager of Federated Global Investment, said in Bloomberg TV’s “monitoring”: “At the stock level, you really need to pay attention to companies with pricing power” and can pass on costs. “If you can’t do it and it starts to eat away at your profits, I think you need to expect to be punished.”

Crude oil prices fell, the US dollar strengthened against other currencies, and Bitcoin fell from historical highs.

Events worth watching this week:

Federal Reserve Chairman Jerome Powell participates in a policy panel discussion on Friday

Some major trends in the market:

stock

• As of 4:02 pm New York time, the S&P 500 Index rose 0.3%
• Nasdaq 100 index rose 0.7%
• The Dow Jones Industrial Average has not changed much
• MSCI World Index has not changed much

currency

• Bloomberg Dollar Spot Index rose 0.2%
• The euro fell 0.2% to 1.1623 US dollars
• British pound fell 0.3% to 1.3788 US dollars
• The yen rose 0.3% to 114.02 against the dollar

Bond

• The 10-year U.S. Treasury bond yield rose by two basis points to 1.68%
• German 10-year government bond yields rose by two basis points to -0.10%
• U.K. 10-year government bond yields rise 5 basis points to 1.20%

commodity

• West Texas Intermediate crude oil fell 0.9% to US$82.64 per barrel
• There is little change in gold futures