US Stocks Trade Mixed

US equities were mixed on Monday as strong earnings prospects offset pressure on corporate credit conditions from elevated bond yields. The S&P 500 was flat near its record high and the Dow gained 200 points, while the Nasdaq 100 fell 0.4%. Brokers across major economies signaled buy recommendations in a variety of sectors ahead of the September-quarter earnings season, indicating that companies have sustained strong earnings growth despite a backdrop of higher interest rates. Still, energy prices and bond yields remained higher as the war in the Middle East persists, threatening more hikes by the Federal Reserve this year. Most sectors were higher, with Meta and Salesforce adding 2% and 5%, respectively, in a strong session for software application companies. On the other hand, Micron, AMD, and Marvell fell around 3% each as AI infrastructure companies continued to trade in a volatile manner.

Futures tracking US equities were flat on Monday as strong earnings prospects offset pressure on corporate credit conditions from elevated bond yields. Contracts for the S&P 500, Nasdaq 100, and Dow hovered near unchanged, with the former two testing record highs. Brokers across major economies signaled buy recommendations in a variety of sectors ahead of the September-quarter earnings season, indicating that companies have sustained strong earnings growth despite a backdrop of higher interest rates. Still, energy prices and bond yields remained higher as the war in the Middle East persists, threatening more hikes by the Federal Reserve this year. Most stocks were higher premarket, with Meta and Salesforce adding 2% and 4%, respectively, in a strong session for software application companies. On the other hand, Micron, AMD, and Marvell fell around 2% each as AI infrastructure companies continued to trade in a volatile manner.

US stock futures edged higher on Monday as investors prepared for a busy week of major bank earnings, marking the start of the third-quarter reporting season. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo are scheduled to report on Tuesday, followed by Bank of America and Morgan Stanley on Wednesday. Investors are also awaiting key inflation data, with the September consumer and producer price indexes due on Wednesday and Thursday, respectively. Last week, all three major US stock indexes closed higher as a rally in technology shares helped offset concerns over rising oil prices and bond yields. Meanwhile, energy market concerns resurfaced after President Donald Trump told reporters over the weekend that he was considering joining Saudi Arabia in its campaign against Iran-backed Houthi militants in Yemen following another deadly attack on Riyadh’s international airport.