XLRE - Stocks Rise On Positive Earnings; Treasury Volatility Returns Nvidia Stumbles: What's Driving Markets Tuesday? | Benzinga
Risk sentiment held steady on Tuesday as corporations continued to report better-than-expected earnings. Johnson & Johnson (NYSE:JNJ), Bank of America Corp. (NYSE:BAC), Goldman Sachs Group Inc. (NYSE:GS), and Lockheed Martin Corp. (NYSE:LMT) all exceeded quarterly earnings expectations.
An unexpected surge in September retail sales, which increased by 0.7% month-on-month, surpassing economists’ forecasts, rekindled turbulence in the U.S. Treasury market. Investors remain concerned that the Federal Reserve may maintain higher interest rates for an extended period. As a result, the yield on a 2-year Treasury note surged past 5.20%, reaching its highest point in over 17 years.
Richmond Fed President Thomas Barkin issued dovish remarks, suggesting that the current policy stance is already restrictive and that the recent inflation report is just one of several positive reports.
NVIDIA Corp. (NASDAQ:NVDA) experienced a significant selloff, with its stock declining by over 3% during the day, following the U.S. government’s decision to tighten restrictions on chip exports to China. This downturn was confined to the semiconductor industry and did not extend to other sectors.
Cues From Tuesday’s Trading:
The S&P 500 saw a 0.2% increase, showing a marginal outperformance compared to both blue-chip stocks, represented by the Dow Jones Industrial Average, which rose by 0.1%, and ...