Stocks in the US experienced a rise on Friday morning as Treasury yields dipped lower. However, the markets are expected to have weekly losses as earnings season gains momentum. The S&P 500 gained 0.5%, the Dow Jones Industrial Average added 0.4%, and the tech-heavy Nasdaq Composite saw gains of around 0.6%.
Stock markets have recovered slightly due to a decrease in US bond yields, which has alleviated some recent pressure on risk appetite. The benchmark 10-year yield slipped to approximately 4.18%, after reaching a three-month high of over 4.25% earlier in the week. However, the Dow and S&P 500 are still expected to have downbeat weeks after being affected by the surge in bond yields, with concerns that the Federal Reserve may hold off on interest-rate cuts.
Investors are bracing themselves for potential disruptions on the horizon, including the upcoming November US jobs report and the tight presidential election the following week. Earnings season is also nearing its conclusion, with Colgate-Palmolive being a notable highlight. Tesla’s earnings surprise has set the stage for five other “Magnificent Seven” megacaps reporting next week, including Google parent Alphabet, Meta, Microsoft, Apple, and Amazon.
Elsewhere, shares in Capri, the parent of Michael Kors, tumbled after a judge blocked the company’s merger with Coach owner Tapestry.
