The most important economic reports for the US stock market

 Financial Markets Overview

🔀 U.S. stocks ended flat yesterday, but the Nasdaq posted modest gains as investors watched Treasury yields and awaited further earnings to gauge the health of U.S. companies.

📈 The yield on the 10-year Treasury note hit 4.222%, the highest since July 26, as investors reassessed their expectations for the Federal Reserve’s policy path. Yields were slightly lower during the trading session, however.

📊 On the corporate front, GE Aerospace fell 9% despite raising its 2024 earnings outlook, as ongoing supply constraints weigh on its revenue. Verizon fell 5.03% after the telecom giant missed third-quarter revenue estimates. Meanwhile, General Motors rose 9.81% after the traditional automaker’s third-quarter results beat Wall Street estimates. All eyes are on Tesla today, which will report its results after the market closes.

💲 The US dollar traded near a two-and-a-half-month high this morning as investors adjusted their bets to the possibility of gradual rate cuts while keeping an eye on the presidential race. The dollar has been on a three-week high as expectations that the Fed would make massive rate cuts after a series of positive economic data have faded. The dollar was last up 0.08% at 103.95 after rising to its highest level since August 2. The index is up more than 3% so far this month.

🏛 With just weeks to go until the presidential election, investors were assessing the risk of a Republican victory - widely expected to be the most favorable electoral scenario for the dollar. In a new Reuters/Ipsos poll, Democratic Vice President Kamala Harris was slightly more likely to favor former Republican President Donald Trump, 46% to 43%.

 👀 Today, there are few economic releases, with the Federal Reserve’s Beige Summary of Economic Conditions set to be the highlight.

💱 Rising US Treasury yields continued to support the USD/JPY pair, which rose to a three-month high of 151.72. Japan is heading for a general election on October 27. Recent polls have suggested that the ruling Liberal Democratic Party could lose its majority along with its coalition partner Komeito.

😥 Elsewhere, the euro was last trading at $1.0794 after falling to its lowest since August 2 at $1.0792. European Central Bank policymakers joined in Tuesday’s signaling of the risk of inflation falling below the bank’s 2% target. Sterling was steady at $1.2976 after falling to its lowest since August 19 at $1.2945 in the previous session.

 🍁 The Bank of Canada will announce its latest monetary policy decision this afternoon, with markets expecting a large 50 basis point rate cut.

🥇 Gold prices rose to an all-time high today, as both the ongoing conflict in the Middle East and uncertainty surrounding the upcoming US elections clearly boosted demand for safe-haven assets. Gold hit an all-time high of $2,750.21.