Nasdaq Index, Dow Jones, S&P 500 News: Fed, Jobs and Apple Earnings Shape This Week’s Market

Highlights

• Fed likely to hold interest rates steady.
• McDonald’s, SoFi post strong earnings beats.
• Gold miners see best month since March.

Big Week Ahead: Fed Decision, Jobs Report and Corporate Earnings Set Market Tone

As the trading week kicks off, market participants are buckling up for a triple-header of key events that could sway market sentiment in profound ways. The Federal Reserve’s upcoming interest rate decision, the release of the October jobs report, and a slew of earnings announcements led by Apple are set to dominate the headlines.

Fed and Treasurys

With interest rates surging and acting as the primary driver behind the recent market correction, all eyes will be on the Fed this Wednesday. The central bank is widely expected to keep its benchmark interest rate steady. The ongoing market volatility has traders fervently hoping that the central bank will signal a pause in its rate-hiking cycle, at least for the remainder of 2023. Concurrently, the 10-year Treasury yield has retreated slightly to around 4.9% after briefly breaching the 5% mark last week.

Earnings

McDonald’s and SoFi Technologies took center stage in pre-market trading, each posting robust earnings that beat expectations. McDonald’s shares popped 2.8% after a successful third quarter, driven by price increases that boosted U.S. same-store sales by 8.1%. SoFi, on the other hand, saw its shares leap by 6.1% following a strong revenue beat and an upward revision of its full-year outlook.

Sectors and Stocks on the Move

Gold miners are on track for their best month since March, buoyed by elevated gold prices. The VanEck Gold Miners ETF (GDX) gained 8.66% month-to-date, its highest level since a 17.59% surge back in March. Companies like New Gold, Gold Fields, and Harmony Gold have led the pack, all posting monthly gains of around 25% or more.

Short-Term Forecast

Considering the blend of key economic and corporate events, as well as the prevailing market conditions, the short-term outlook for the U.S. markets appears to be cautiously optimistic.

Investors are hoping for a Fed decision that might quell rate hike fears, along with a jobs report that could provide the central bank with enough cover to maintain its current policy stance.

Therefore, the market sentiment for the week could lean bullish, barring any unexpected developments.

Technical Analysis