U.S. stocks rose on Monday, as the Dow Jones, S&P 500, and Nasdaq 100 index futures advanced, following Friday’s lower close.
President Donald Trump said Sunday that the U.S. has already won in Iran and will wrap up the war soon, either through a deal with Tehran or by ending it on its own, ahead of Tuesday’s midterms. He told Right Side Broadcasting Network before a campaign rally in Iowa on Sunday that "we’ve had such a victory" and that the U.S. will "put it away very soon, one way or the other." –
Separately, Iran’s security chief Mohsen Rezaee criticized European governments over the economic fallout of the Iran war, after German Chancellor Friedrich Merz said Europe had incurred more than €100 billion (around $112 billion) in additional energy costs over the past eight months because of the conflict.
Meanwhile, the 10-year Treasury bond yielded 4.91%, and the 2-year Treasury bond yielded 4.59%, at the last check. The CME Group’s FedWatch tool projections show markets pricing in a 72.9% likelihood of the Federal Reserve hiking interest rates after its December meeting.
| Index | Performance (+/-) |
|---|---|
| Dow Jones | 0.42% |
| S&P 500 | 0.46% |
| Nasdaq 100 | 0.84% |
| Russell 2000 | 0.68% |
The SPDR S&P 500 ETF Trust (NYSE:SPY), the Invesco QQQ Trust ETF (NASDAQ:QQQ) and the SPDR Dow Jones Industrial Average ETF Trust (NYSE:DIA), which track the S&P 500 index, Nasdaq 100 index and Dow Jones Industrial Average, respectively, were higher in premarket trading on Monday. The SPY was up 0.48% at $759.31, the QQQ advanced 0.88% to $696.59, and the DIA rose 0.43% to $519.34.
U.S. stocks closed lower on Friday, with the Dow falling more than 500 points. Energy, consumer staples, and utilities led, while information technology, industrials, and communication services lagged.
| Index | Performance (+/-) | Value |
|---|---|---|
| Dow Jones | -1.09% | 51,770.31 |
| S&P 500 | -1.82% | 7,580.07 |
| Nasdaq Composite | -2.86% | 25,437.00 |
| Russell 2000 | -1.66% | 2,811.84 |
Mohamed El-Erian said markets have grown "acutely sensitive to tech news" after a week in which "what moved markets most were tech corporate earnings," driving "wild volatility in the NASDAQ."
He wrote that the market "sensed some cracks in the tech-related shield," noting that "earnings disappointments were punished harshly," including Intel Corp.’s (NASDAQ:INTC) 29% fall on Friday, while "bond risk spreads on tech names, including CDS, continued to widen."
El-Erian also said the week ahead centers on Tuesday’s U.S. midterms and a heavy data slate, with a consensus forecast of 65,000 jobs created in October and an unchanged unemployment rate of 4.2%. He added that markets expect major central banks to resume hiking in December and said, "The market probability of a Fed hike is around 75%."
Here’s what investors will be keeping an eye on this week.
Crude Oil WTI futures were trading lower in the early New York session by 4.19% to hover around $99.76 per barrel. Meanwhile, Brent futures were trading lower in the early New York session by 4.06% to hover around $108.83 per barrel.
Gold Spot US Dollar rose 0.10% to hover around $3,901.84 per ounce. The U.S. Dollar Index spot was 0.54% lower at the 101.4344 level.
Meanwhile, Bitcoin (CRYPTO: BTC) was trading 0.03% lower at $78,206 per coin over the last 24 hours.
Asian markets were mixed on Monday, as Australia’s ASX 200 and Japan’s Nikkei 225 indices fell. India’s Nifty 50, South Korea’s Kospi, China’s CSI 300, and Hong Kong’s Hang Seng indices rose. European markets were mixed in early trading.
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