With the presidential election just two weeks away, investor risk appetite is taking a pause, resulting in a broadly flat week for Wall Street. Election uncertainty continues to loom large among investors as concerns persist over fiscal policies and potential trade disruptions due to tariffs.
Treasury yields rose further during the week, reflecting growing expectations that regardless of the election outcome, the next administration may struggle to enact stricter fiscal measures.
Adding to the cautious mood, the International Monetary Fund issued warnings on the long-term trajectory of U.S. national debt.
The S&P 500, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), endured three consecutive losing sessions before rebounding slightly to end the week, as strong earnings reinforced the view that corporate America remains resilient.
Tesla Inc. (NASDAQ:TSLA) was the standout in earnings this week, with investors cheering after the company announced plans to launch more affordable models by the first half of 2025. Shares of Tesla surged 21% on Thursday, marking the stock's biggest single-day gain since May 2013.
Looking ahead, the spotlight turns to next week's earnings from five of the Magnificent Seven: Alphabet Inc. (NASDAQ:GOOGL)(NASDAQ:GOOG), Microsoft Corp. (NYSE:MSFT), Meta Platforms Inc. (NASDAQ:META), Amazon.com Inc. (NASDAQ:AMZN) and Apple Inc. (NASDAQ:AAPL) — as well as official October labor market statistics.
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Musk's Wealth Surges
Elon Musk's fortune skyrocketed by $33.5 billion in one day following Tesla's stock rally that boosted its valuation by nearly $150 billion. This impressive market performance underscores investors' renewed optimism in Tesla's future growth and dominance in the EV sector.
Boeing Strike Continues
Boeing Co. (NYSE:BA) machinists rejected a proposed 3.5% wage hike, prolonging their five-week strike. The ongoing labor dispute compounds Boeing's financial struggles, with the company already facing a $6 billion loss and significant cash burn as it seeks to resolve worker grievances.
GM Earnings Impress
General Motors Co. (NYSE:GM) reported better-than-expected third-quarter earnings, with revenue and EPS surpassing forecasts. Buoyed by strong consumer demand, the company raised its annual profit outlook, reinforcing its growth momentum and financial resilience. Shares rallied over 7%.
Holiday Spending Outlook
U.S. shoppers plan to spend $2,100 this holiday season, up 7% from 2023, according to a Bank of America survey. The increase signals robust consumer confidence, brightening the outlook for retail stocks, as gauged by the SPDR S&P Retail ETF (NYSE:XRT). Historical trends suggest they usually outperform after the holiday season.
