Following the six-week gaining streak, the S&P 500 started this week on a weaker note. After a brief pullback on October 24, the S&P 500 started Wednesday on a weaker note and fell as the day progressed. On October 25, all 11 major sectors closed the day with losses. The market’s fall was driven by losses in the Telecom Services and Industrials sectors.
The market sentiment on Wall Street was strong at the beginning of the week despite a pullback due to higher expectations on the third quarter corporate earnings reports. The earnings reports are scheduled to release this week. Nearly 190 companies in the S&P 500 planned to release their third-quarter reports this week. The market fell on Wednesday due to the release of weaker-than-expected earnings reports. Chipotle (CMG) and Advanced Micro Devices (AMD) fell more than 15% on Wednesday after they released their corporate earnings. The market is waiting for the release of initial jobless claims and pending home sales data on October 27.
The S&P 500 opened the day lower on Wednesday and fell as the day progressed. The CBOE Volatility Index (or VIX) measures uncertainty in the market. On October 25, it fell 0.45% to 11.18. The VIX is measured on a scale of one to 100 with 20 as the historical average. The VIX is also called the “fear index.” It usually has an inverse relationship with stocks and rises when the S&P 500 falls.
NASDAQ and Dow
On October 25, the NASDAQ and Dow Jones Industrial Average opened the day lower. The NASDAQ closed the day at 6,563.89 with a loss of 0.52%. The Dow Jones Industrial Average lost strength amid weak corporate earnings and closed at 23,329.46 with a fall of 0.48%.
In the next part of this series, we’ll discuss how the US Dollar Index and US Treasury yields performed early on October 26.