TLDR
US stocks finished higher on Friday, with the S&P 500 settling at 7,812 and the Dow at 51,655, rounding out a record-setting week. Gold futures climbed to US$4,216 an ounce while Brent crude held above US$100. Three major US banks report earnings on Tuesday.
Stocks and gold advance as earnings season approaches
Wall Street closed higher on Friday, 9 October, with the S&P 500 gaining 46 points, or 0.6 per cent, to finish at 7,812, capping a record-setting week for US equities.[1] The Dow Jones Industrial Average added 423 points, or 0.8 per cent, to close at 51,655.[1]
Gains on the session reflected ongoing market optimism around the AI trade and active positioning by investors ahead of the major corporate earnings reports due for release next week. The S&P/ASX 200 also finished in positive territory, rising 55.70 points or 0.64 per cent to 8,717.[3]
Treasury yield holds near multi-decade high
The yield on the 10-year US Treasury note finished at 5.24 per cent on Friday, near its highest level since 2002.[2] Elevated long-term yields raise borrowing costs for households and businesses across the economy and serve as a benchmark for mortgage rates and corporate funding, adding pressure to interest-rate-sensitive sectors even as equities pushed higher.
Rising stock prices and high bond yields reflect competing forces across financial markets: earnings optimism is pulling equities up while sovereign debt markets continue to signal concern about the durability of elevated rates.
Gold gains while oil barely moves
December gold futures settled at US$4,216.30 an ounce on Friday, up US$59.30 on the session.[1] Precious metals have attracted consistent buying from investors in recent weeks against a broader backdrop of high yields and geopolitical uncertainty.
Bank earnings set the tone for Tuesday
The week's next significant test for markets arrives on Tuesday, 13 October, when three of the largest US banks release third-quarter results. JPMorgan Chase will publish its figures at approximately 7:00 a.m. ET and host its earnings call at 8:30 a.m. ET.[4] Citigroup will release results by press release at 8:00 a.m. ET, followed by a webcast at 11:00 a.m. ET.[5]
Wells Fargo has scheduled its earnings call for 10:00 a.m. ET the same day.[6] Together, the three banks will provide investors with the first major read on corporate health for the quarter, with investors watching closely for signals on loan demand, net interest margins and credit quality while the 10-year Treasury yield sits at 5.24 per cent.
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