U.S. Stock Markets Plummet Amid a Flood of Third-Quarter Results

U.S. equity markets and stock indices were slightly lower on Monday, consolidating near record levels, with attention focused on a series of key results from the technology sector.

Positive results from banks and technology companies in the previous week had driven several of Wall Street’s major indices to record highs, with the S&P 500 and the Dow Jones both posting record highs on Friday. This marked a sixth straight week of gains, the best streak of the year for both indices.

However, momentum appears to be stalling somewhat, as anticipation of both the upcoming Federal Reserve meeting and the tight U.S. presidential election keeps investors cautious. High valuations for U.S. equities have also increased the likelihood of near-term losses.

Tesla (TSLA) will be the most prominent company reporting results this week, with the electric car maker’s earnings under the spotlight following its disappointing robotaxi unveiling earlier this month.

Tesla also missed expectations for third-quarter deliveries, which is expected to weigh on its quarterly earnings when it reports on Wednesday.

Several chipmakers will also release results this week. ASML (ASML) and TSMC (TSM), two key players in the sector, gave mixed signals regarding demand. Texas Instruments (TXN), Western Digital Corporation (WDC), and Lam Research Corp (LRCX) are among the relevant stocks reporting, while in the broader technology sector, IBM (IBM) will also announce its results this week.

Outside the technology sector, this week will feature earnings reports from major defense companies, including RTX Corp (RTX), Lockheed Martin (LMT), L3Harris Technologies (LHX), General Dynamics (GD), and Northrop Grumman (NOC).

Telecommunications giants T-Mobile US (TMUS), Verizon Communications (VZ), and AT&T (T) are also set to report earnings.

Aircraft manufacturer Boeing (NYSE) will report its results on Wednesday, with a particular focus on its cash position as the company faces its first significant strike in over a decade.

It will be a relatively quiet week on the U.S. economic calendar, although investors will receive updates on the housing sector with reports on new and existing home sales. Additionally, durable goods orders, consumer confidence, and initial jobless claims will be released.

On Wednesday, the Federal Reserve will release its Beige Book, a report on economic conditions across the central bank’s 12 districts.

Market participants will also hear from several regional Federal Reserve officials throughout the week, including Minneapolis Fed President Neel Kashkari, Kansas City Fed President Jeffrey Schmid, San Francisco Fed President Mary Daly, Philadelphia Fed President Patrick Harker, and Richmond Fed President Thomas Barkin.

Oil prices rose on Monday, recovering from last week’s steep losses, as energy traders weighed concerns over weak demand from major importer China and the evolving conflict in the Middle East.

Data released on Friday indicated that China’s economy grew in the third quarter at the slowest pace since early 2023, although September consumption and industrial production exceeded forecasts.

Uncertainty remains over how the conflict in the Middle East will develop and whether it will significantly impact oil supply in the region.