4:10pm: Stocks recover from lows
US stocks ended the day mixed after recovering from session lows, as investors weighed a recent bond market sell-off and upcoming earnings reports.
The S&P 500 and Dow Jones closed slightly below the flatline, while the Nasdaq Composite edged up 0.2%.
This marked the first consecutive losing days for the S&P 500 since September 6.
2:35pm: Trump stock up
Trump Media & Technology Group (DJT) stock surged to its highest level since July, rising by as much as 10% on Tuesday as investors bet on former President Donald Trump’s improved chances in the upcoming election.
Prediction markets indicate the candidate pulling ahead of Democratic nominee Kamala Harris despite a tight race in key battleground states.
DJT has experienced volatility since its public debut in March, following its merger with Digital World Acquisition Corp.
Trump owns about 60% of the company, giving him a stake valued at approximately $4 billion.
1:25pm: Market pressure builds
Stocks were still broadly lower by early afternoon Tuesday, with the S&P 500 dropping approximately 0.2%, while both the Dow Jones Industrial Average and the Nasdaq Composite fell about 0.1%.
Investors are reacting to a recent sell-off in the bond market and are preparing for upcoming earnings reports. Concerns are mounting over the Federal Reserve's future rate-cutting plans, influenced by economic strength, and cautious statements from Fed officials.
As IG's Chris Beauchamp noted, “October’s weakness in US stocks usually gets started around now, especially in pre-election years.
"Hopes that a Trump presidency will prove beneficial for the US economy in some ways were offset by the knowledge that a Republican win will also mean more disagreements over trade with both allies and foes alike," Beauchamp added. "At least US GDP growth, and thus consumer spending, remains robust.”
11:45am: GM earnings surprise
General Motors Company (NYSE:GM) (General Motors Company (NYSE:GM)) shares soared more than 8% after the automaker’s third quarter earnings crushed expectations.
Revenue for the period was $48.8 billion, up 10.5% year-over-year and ahead of estimates of $44.3 billion.
Adjusted earnings per share (EPS) of $2.96 surged almost 30% from the year-ago quarter. Wall Street analysts had pegged EPS at $2.49.
The company also updated its full-year earnings guidance, raising its adjusted EPS forecast range from $9.50 to $10.50 to now expect $10 to $10.50.
Shares of GM added 8.3% at about $53 in early trade on Tuesday.
10.01am: Wall Street opens in red
Wall Street faced a tough start on Tuesday morning as the latest string of third-quarter earnings failed to buoy sentiment early on.
The Dow Jones and S&P 500 both fell by 0.4% as trading got underway, while the Nasdaq slipped 0.2% following the opening bell.
This was despite expectation-beating earnings from the likes of General Motors Co and Philip Morris International Inc (NYSE:PM, ETR:4I1), which sent shares in each up more than 7% early on.
“The uncertainty surrounding conflicts in the Middle East and Europe, as well as the US presidential election, is weighing on market sentiment,” Tickmill Group partner Patrick Munnelly.
This had seen yields on 10-year treasury bonds briefly top the 4.2% mark for the first time since July on Tuesday, as markets priced in a win for Donald Trump in next month’s election.
“Republican candidate Donald Trump is seen as negative for bonds since his tax, tariff and immigration policies are likely to be inflationary,” Munnelly added, in turn prompting expectations for rate cuts from the Federal Reserve ahead to be wound down.
7.34am: Wall Street seen lower
Wall Street was braced for a negative start on Tuesday as the S&P 500 and Dow Jones looked on course to fall further from record closes seen late last week.
Futures had the S&P 500 down 0.5% and the Dow Jones off 0.4% ahead of the opening bell, after both fell throughout the day on Monday after closing at all-time highs last Friday.
The Nasdaq looked set to also drop by 0.5% ahead of the open, as Tuesday brought the latest string of third-quarter updates from companies.
General Motors Co’s figures showed per-share earnings surpassed expectations at US$2.68 on the back of a 10.5% increase in revenue to US$48.8 billion, sending shares higher in pre-market trading.
3M Co (NYSE:MMM) shares also climbed ahead of the open after the industrial conglomerate raised its full-year profit forecast to between US$7.20 and US$7.30 a share on expectation-beating results.
Tobacco firm Philip Morris International Inc (NYSE:PM, ETR:4I1) climbed in pre-market trading too, as third-quarter figures showed higher than anticipated revenue and earnings of US$9.9 billion and US$1.91 per share respectively.
XTB analyst Kathleen Brooks noted “doubt” over future rate cuts from the Federal Reserve had been among factors weighing on markets this week.
“The market is currently pricing in an 11% chance of no rate cut next month,” she said.
“Although this may seem small, it was almost unthinkable a week ago, when there was a mere 2% chance of no rate cut [...] thus, the prospect of a pause from the Fed is a possibility.”