Major Indexes Pull Back After Record Highs
U.S. stock markets closed lower on Thursday as the benchmark S&P 500 and tech-heavy Nasdaq retreated from fresh record highs set earlier in the week. The blue-chip Dow Jones Industrial Average fell 0.5%, while the S&P 500 declined 0.3% and the Nasdaq dropped 0.1%. This pullback came despite strong corporate earnings from several key players, highlighting the ongoing market volatility amid the ninth day of the U.S. government shutdown.
Safe-Haven Assets See Mixed Performance
Gold futures, which had surged 50% this year and crossed the $4,000 threshold for the first time this week, pulled back 2% to $3,990 per ounce. The precious metal’s retreat from record levels suggests some profit-taking after its remarkable rally. Meanwhile, Bitcoin fell 2% to approximately $121,000, while the 10-year Treasury yield ticked higher to 4.14%, reflecting ongoing uncertainty in fixed-income markets.
Corporate Standouts Defy Market Weakness
Despite the broader market decline, several companies delivered standout performances driven by strong quarterly results and strategic developments.
Delta Air Lines Soars on Record Revenue
Delta Air Lines (DAL) shares surged 4.3% after the carrier reported record third-quarter revenue and issued an optimistic outlook for the fourth quarter. The airline posted adjusted earnings per share of $1.71 on revenue that rose 6% year-over-year to $16.67 billion, exceeding analyst expectations. Premium and corporate travel sales were key drivers, with corporate sales rising 8% and premium revenue gaining 9% from a year earlier.
PepsiCo Beats Expectations Amid Leadership Change
PepsiCo (PEP) stock rose 4.2% after the snack and beverage giant’s third-quarter results topped estimates. The company posted adjusted earnings per share of $2.29 on revenue that increased 2.7% year-over-year to $23.94 billion. Strength in international business and improvements in North American beverage operations contributed to the better-than-expected performance. The company also announced that Steve Schmitt, CFO of Walmart’s U.S. unit, will take over as chief financial officer effective November 10.
Sector Performance Highlights Market Divergence
The market’s mixed performance was evident across sectors, with consumer staples being the only positive sector among the 11 tracked by the S&P 500.
Consumer Staples Lead While Materials Lag
Consumer staples stocks gained 0.6%, with PepsiCo and Band-Aid parent Kenvue (KVUE) among the top performers. In contrast, materials stocks declined 1.5%, reflecting the broader market weakness. The divergence highlights how defensive sectors are finding favor amid ongoing economic uncertainty.
Technology and AI Stocks Maintain Momentum
Nvidia (NVDA) shares advanced 1.8% to hit an all-time high following reports that Saudi Arabia and the White House are nearing a deal to allow U.S. chipmakers to export semiconductors to the Gulf nation. The chipmaker’s continued strength underscores the persistent demand for AI-related technologies despite broader market concerns.
Key Market Movers and Shakers
Several individual stocks made significant moves, reflecting both company-specific developments and broader sector trends.
- Albemarle (ALB) jumped 5.2% as the world’s largest lithium producer benefited from China’s expanded export restrictions on rare earth materials
- Akero Therapeutics (AKRO) soared 16% after Novo Nordisk announced it was buying the liver disease treatment developer for up to $5.2 billion
- Ferrari (RACE) sank 15% after the luxury carmaker issued a soft outlook
- Boeing (BA) fell 4.1% after Turkish Airlines’ chairman suggested the carrier might switch a recent 737 MAX order to Airbus
- Dell Technologies (DELL) dropped 5.2%, giving back some of its recent gains despite raising its annual forecasts
Government Shutdown Continues to Weigh on Sentiment
The ninth day of the U.S. government shutdown provided a persistent backdrop of uncertainty, with no clear resolution in sight. President Donald Trump indicated during a Cabinet meeting that the White House plans to eliminate programs popular with Democrats, suggesting the funding stalemate could continue. This political gridlock is creating headwinds for market sentiment despite strong corporate fundamentals.
Rare Earths and Mining Stocks Benefit from Geopolitical Tensions
Rare earths and mineral mining stocks surged after China expanded licensing requirements for exports of materials critical to technological products, citing national security reasons. Shares of USA Rare Earth (USAR) soared 15%, while MP Materials (MP) advanced nearly 3%. These gains reflect ongoing efforts by the Trump administration to shore up America’s access to strategic materials and reduce reliance on China.
Looking Ahead: What Investors Should Watch
As markets navigate this period of uncertainty, several factors will be crucial for determining future direction:
- Government shutdown resolution: Any progress toward ending the budget impasse could provide a significant boost to market sentiment
- Corporate earnings momentum: Continued strong results from key companies could help offset broader economic concerns
- Federal Reserve policy: With inflation remaining above target, the central bank’s next moves will be closely watched
- Geopolitical developments: The upcoming meeting between President Trump and Chinese President Xi Jinping could impact trade and technology stocks
The current market environment presents both challenges and opportunities for investors. While the government shutdown creates uncertainty, strong corporate earnings and ongoing AI demand provide reasons for optimism. As always, diversification and careful risk management remain essential in navigating these volatile conditions.
