Earnings season takes center stage

Stifel on the S&P500

A recent market commentary from Stifel suggests that the S&P 500 could see another upward move, followed by a significant decline in 2025. The firm anticipates a potential 10% rally, pushing the index to around 6,400 before it reverses next year.

Despite the optimistic outlook for the U.S. economy and possible interest rate cuts by the Federal Reserve, they project the index will drop by 26%, falling to approximately 4,700 in 2025.

Gold

Concerns over escalating geopolitical tensions in the Middle East did boost some safe-haven demand for gold. However, this was offset by the strength of the U.S. dollar, which gained after signs of resilience in the U.S. economy emerged.

Gold prices stabilized near record highs during Asian trading on Wednesday; after reaching all-time highs in September, gold has remained under pressure touching lows of $2,600 per ounce level, with traders factoring in a more cautious pace of Fed rate reductions.

The U.S. dollar, meanwhile, surged to two-month highs on these expectations, exerting pressure on metal markets. However, markets still expect gradual rate cuts in the U.S. which supports a favorable outlook for gold and other non-yielding assets, keeping prices close to their recent peaks.

Earnings

The banking sector has garnered attention with Goldman Sachs exceeding third-quarter expectations, driven by strong performance in its Global Banking & Markets division, which generated $8.55 billion in net revenues for the quarter. Despite the strong results, shares edged 0.07% lower by the market close.

Meanwhile, Bank of America saw its stock rise by 0.6% after reporting net profit per share that surpassed forecasts. Although net profit dipped compared to the previous year, higher investment banking fees helped offset a slight year-over-year decline in net interest income.