U.S. stock index futures pulled back today as investors turned their focus to the Federal Reserve's policy decision and scrutinized corporate earnings reports amidst the ongoing earnings season. Market participants are eagerly awaiting Jerome Powell's conference, with expectations that the Fed will maintain interest rates. However, there is a 27.4% chance of a rate hike in December.
Daniel Bergvall from SEB Research noted that despite the robust economy, escalating Treasury yields and a 10-year note yield reaching 4.905% are indirectly performing the Fed's tightening job. These factors have influenced investor sentiment and are projected to impact U.S. equities in the near term.
The recent October plunge in U.S. equities was triggered by soaring Treasury yields, conflict in the Middle East, and mixed earnings results. Among these earnings reports, CVS Health (NYSE:CVS) exceeded quarterly profit estimates while Estee Lauder (NYSE:EL) reduced its annual profit outlook. These varied results add another layer of complexity to the current investment landscape, with investors keeping a close eye on further earnings announcements and economic indicators.
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