Wall Street Closes Mixed: Dow Hits Record While Nasdaq Retreats

The New York stock market delivered a mixed performance on the 21st (local time), as strong individual stock performances in anticipation of third-quarter earnings painted a varied picture across major indices.

The Dow Jones Industrial Average climbed 218.16 points, or 0.47%, to reach a record high of 46,924.74, marking its third consecutive session of growth and 12th record close of the year. Meanwhile, the S&P 500, comprising large-cap stocks, remained unchanged at 6,735.35. The tech-heavy Nasdaq Composite, however, edged down 36.88 points, or 0.16%, to close at 22,953.67.

Earnings Momentum Drives Select Stocks Higher

The Q3 earnings season has kicked into high gear, propelling individual stocks in divergent directions based on corporate performance.

3M soared 7.66% after posting better-than-expected earnings, fueled by strong operational execution. Coca-Cola gained 4.06%, while Apple edged up over 1%, contributing to the Dow's upward trajectory. General Motors (GM) outshined them all with a meteoric 14.86% gain, its highest jump since going public in 2010. The company credited robust demand for full-size SUVs, which exceeded supply, for its stellar performance. CEO Mary Barra also noted an improved profit outlook, driven by factors including cost reductions related to tariffs—a key issue in U.S.-China trade relations. These dynamics bolstered investor confidence, further supporting GM's rise.

Technology Stocks Struggle Amid Broad Sector Weakness

While industrial and consumer-focused companies celebrated gains, technology stocks faced mounting pressure. Alphabet (Google) dropped 2.37%, and Constellation Energy shed 3.03%, putting downward pressure on the Nasdaq Composite. Broader declines in communication and utility stocks compounded the index's retreat.

Netflix, however, defied the tech slump by edging up 0.23%, closing at $1,241.35. Optimism surrounding its upcoming earnings drove the modest increase, underpinned by expectations of robust growth in its advertising business.

Research firm FactSet revealed that 86% of U.S. companies reporting earnings as of last Friday have outperformed market projections. This week, a further 20% of S&P 500 firms are slated to release results, which could dramatically shape market sentiment.

Safe-Haven Assets See Sharp Declines

Traditional safe-haven assets experienced an abrupt tumble. Gold futures plummeted $216 per ounce, marking a steep 5.7% drop—their largest single-day decline since 2013. Meanwhile, silver sank 7.2%.

Analysts point to renewed optimism surrounding a U.S.-China trade resolution as the primary driver of safe-haven asset declines. Furthermore, a groundbreaking agreement between the U.S. and Australia on the rare-earth mineral supply chain has alleviated some geopolitical concerns, further reducing demand for these defensive investments.

Stock Market Gains Underpinned by Lower Treasury Yields

"Earnings performance remains the cornerstone supporting this market's upward momentum," stated Scott Helfstein, Head of Investment Strategy at Global X. Strong earnings are providing a solid foundation for stocks to climb, particularly as investors remain optimistic about further economic recovery.

The benchmark U.S. 10-year Treasury yield dropped to 3.962%, its lowest level in nearly a year. This decline reflects climbing expectations for potential rate cuts, easing fear of aggressive monetary tightening, and diminishing economic uncertainty overall.

Additionally, attention is now squarely on September's Consumer Price Index (CPI), scheduled for release this Friday. Despite delays in some government reporting due to the protracted U.S. government shutdown, the CPI data will be published as planned, offering further insight into inflation trends.

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In conclusion, the markets remain split, with strong earnings providing a robust lift to select stocks while weak technology sector performance and declining safe-haven assets create contrasting dynamics. As Treasury yields fall and economic hopefuls point to improving conditions, investors will keep a close watch on forthcoming indicators, particularly within the earnings and inflation spaces.