Story by MT Newswires

US benchmark stock indexes traded mixed as a surge in inflation expectations pushed technology and communications services lower, outweighing the positive impact of the strong earnings from mega-cap banks.

The Nasdaq dropped 1% to 13,436.5, and the S&P 500 fell 0.4% to 4,334.4 after midday on Friday. The Dow Jones Industrial Average rose 0.1% to 33,667.8. Communication services, technology, and consumer discretionary led the decliners, while energy was the top gainer intraday

The University of Michigan’s preliminary consumer sentiment index fell to 63 in October from 68.1 in September, compared with expectations for 67 in a survey compiled by Bloomberg. Respondents saw one-year inflation expectations at 3.8%, up sharply from 3.2% in September and the highest since May 2023, while five-year inflation expectations rose to 3% from 2.8%.

Gold soared 2.8% to $1,934.6, and silver surged 4.1% to $22.88.

JPMorgan Chase (JPM) reported third-quarter results that topped market expectations, as the banking giant logged higher net interest income and lower credit costs. Shares jumped 3.9% intraday, the lead gainer on the Dow.

Wells Fargo (WFC) also reported better-than-expected results for the third quarter, as the lender benefited from higher rates and investments in its businesses. Shares advanced 3.9% intraday.

The US 10-year Treasury yield slumped 8.4 basis points to 4.63%, and the two-year rate declined 2.4 basis points to 5.05%.

West Texas Intermediate crude soared 4.1% to $86.41 per barrel on concerns supply will tighten after the United States increased enforcement of the price cap on Russian oil exports imposed following the invasion of Ukraine.

Meanwhile, Israel’s military warned more than 1.1 million civilians in northern Gaza to evacuate “southwards,” as the United Nations said the order for the mass evacuation was “impossible” without major humanitarian consequences, CNN reported. Hamas told residents not to leave their homes, the news report said.

Further, in company news, Dollar General (DG) shares surged 9.6% intraday, the top performer on the S&P 500, after the discount retailer re-hired Todd Vasos as its chief executive, nearly less than a year after he stepped down from the role. Additionally, the retailer lowered the top end of its fiscal 2023 earnings outlook while tightening its full-year sales guidance.

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