U.S. stock index futures showed mixed performance as tech companies prepare to release their earnings. The Dow Jones Industrial Average futures fell by 0.36%, while the S&P 500 gained 0.16%, and the Nasdaq rose 0.78%.
The U.S. October ADP employment report revealed an increase of 233,000 jobs, exceeding the forecasted 111,000 jobs and the previous count of 143,000 jobs. Despite severe storms in the southeastern U.S. and disruptions in labor supply, private sector job creation reached its highest level in over a year. ADP's chief economist noted the continued strong job growth even post-hurricane recovery and suggested broad resilience in U.S. hiring trends.
European markets saw declines with Germany's DAX index down 0.95%, the UK's FTSE 100 down 0.42%, France's CAC 40 down 1.44%, and the Euro Stoxx 50 index dropping 1.19%. Meanwhile, WTI crude oil prices increased by 1.21% to $68.02 per barrel, and Brent crude rose 1.15% to $71.54 per barrel.
Goldman Sachs believes global investors are overestimating the risk of financial market uncertainty due to the unresolved results of the U.S. presidential election. Analysts from Goldman Sachs argue that while there are potential tail risks, the probability of election delays disrupting market response appears overestimated.
UBS cautioned about market volatility due to the upcoming U.S. election and declining interest income, noting potential unpredictable impacts on investor sentiment. Despite prospects for a soft landing in the U.S. economy, broader macroeconomic outlooks remain uncertain globally. The market is currently reflecting expectations of a Trump victory, but a Kamala Harris win could prompt market shifts.
Bitcoin rallied and is close to breaking its March record high of nearly $74,000. It's perceived by some as a "Trump trade," as he has been welcoming of digital assets.
Neuberger Berman warns against buying U.S. Treasuries on dips, suggesting the recent sell-off might just be the beginning of a prolonged yield increase. They project the 5-year Treasury yields could rise to approximately 4.50% within the next three months, from the current 4.13%.
Key stocks to watch: Alphabet's (GOOGL) shares rose nearly 6% on surging cloud business revenue; Trump's media-related stocks fell; semiconductor stocks, including Nvidia (NVDA) and Qualcomm (QCOM), saw declines; Bank of America (BAC) slid 2% amid regulatory discussions; and Eli Lilly (LLY) dropped over 7% due to disappointing quarterly earnings.
