Major indexes started mixed as earnings season kicked off with disappointing results from JPMorgan Chase and mixed news from Wells Fargo. Tech stocks faced pressure following a tough day in South Korea's markets, while bond yields and oil prices slid. Investors are watching for clarity on AI adoption and margin expansion amid rising memory chip costs.
Market breadth remains weak, with only 26% of S&P 500 stocks outperforming the index recently. Attention now turns to tomorrow’s September Consumer Price Index (CPI) and Thursday’s Producer Price Index (PPI), with consensus expecting headline CPI to rise 3.7% year-over-year. Analysts say these reports could shift rate hike odds.
Bank earnings showed solid loan growth and rising net interest income, suggesting profitability in a higher-rate environment, though investment banking fees dropped 8% at JPMorgan. Mortgage rates hit a three-year high, squeezing the housing market ahead of existing home sales data.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing