The U.S. stock market began the week on a cautious note as investors digested fresh economic data and kept a close eye on the Federal Reserve’s next policy direction. The Dow Jones Industrial Average hovered near the flat line, while the S&P 500 and Nasdaq Composite slipped slightly amid renewed concerns about interest rates and corporate earnings.
After a strong rally in October, traders appear hesitant to make big moves without clearer signals from the Fed. Despite the U.S. central bank cutting rates twice this year, comments from Fed Chair Jerome Powell last week suggested that policymakers remain wary of inflation and may hold rates steady in December.
Investors are now balancing optimism about cooling inflation with uncertainty around global growth and earnings pressure. “We’re in a tug-of-war between soft-landing hopes and persistent inflation fears,” said a market strategist at Morgan Stanley. “That’s why volatility could spike again in November.”
📊 Tech and Energy Stocks Under Pressure
Technology stocks led the decline as Apple, Microsoft, and Nvidia slipped amid profit-taking. Semiconductor firms also struggled after a sharp October rally. Meanwhile, energy stocks saw mild gains as oil prices rose above $85 per barrel, fueled by renewed tensions in the Middle East.
The Treasury yield curve remained inverted, with the 10-year yield hovering near 4.3%, signaling investors’ mixed outlook on long-term growth. The U.S. dollar index eased slightly, providing some relief to commodities and emerging-market equities.
💼 Earnings Season Wrap-Up
Earnings season has been mostly positive, with about 80% of S&P 500 companies beating expectations. However, several large firms issued cautious guidance, citing cost pressures and slower demand in Europe and China. Analysts note that despite resilient corporate profits, margin compression could weigh on the next quarter’s results.
🌎 Global Market Sentiment
Overseas, European markets traded mixed, while Asian equities closed mostly higher, supported by China’s latest stimulus measures. Gold prices held steady as investors hedged against geopolitical risks, and Bitcoin rose above $70,000 for the first time in weeks.
Market watchers say the coming week will hinge on upcoming U.S. inflation and employment data. A softer reading could revive hopes for another Fed rate cut in early 2026.