Wall Street indexes are showing positive momentum, thanks to strong bank earnings reports. The Dow Jones Industrial Index hit the 43000 mark for the first time, while the S&P 500 and Nasdaq 100 also saw gains. However, the Nasdaq 100 is still trailing behind its peers and is about 300 points away from its all-time high of 20790.
Earnings season kicked off last week with major banks like JPMorgan Chase and Wells Fargo reporting better-than-expected results. This week, 41 S&P 500 companies are set to release their earnings, which could lead to increased volatility in US indices. Despite Bank of America’s less optimistic earnings, Goldman Sachs and CitiGroup surpassed estimates, helping to boost US indexes.
On the other hand, oil stocks took a hit today as crude oil prices dropped due to hopes that Middle East supply disruptions would not occur. Companies like Exxon Mobil, Occidental Petroleum, and Chevron all saw declines of 2.5% to 3% during the day.
Looking ahead, the technology and communication sectors are expected to post significant year-over-year growth, which could further propel US indices. Big tech companies are set to report earnings later in October, potentially leading to more gains just before the US election. This could set the stage for a continued upward trend for US indices heading into 2025.
In terms of technical analysis, the S&P 500 is on a long-term upward trajectory. After breaking out of a triangle pattern a few weeks ago, the index has potential targets around the 5910 and 6169 levels. However, with the recent movements, the opportunity for new bulls to enter the market may be limited. A break above 5910 could lead to a run towards the psychological 6000 level, with potential resistance before reaching 6169.
As for the rest of today’s session, US data is limited, and all earnings releases are already out. The focus now shifts to comments from Federal Reserve policymakers, which could provide insights into upcoming policy decisions. Overall, the outlook for US indices remains positive, with potential for further gains in the near future.
