US stocks head into earnings season

Chứng khoán Mỹ hướng đến mùa báo cáo kinh doanh

US stocks turned lower in overnight trading, Vietnam time, as investors remained cautious ahead of the upcoming earnings season and the ongoing US government shutdown.

All three major indexes rose to new records early in the session, but the declines were followed by a correction after a bull market. A series of stocks in the airline and retail sectors rose after positive business reports.

Investors are waiting to see whether third-quarter corporate earnings growth will be as solid as the previous two quarters, said Matthew Keator, managing partner at asset manager Keator Group in Lenox, Massachusetts. That, combined with uncertainty surrounding the lack of U.S. economic data and the direction of the Federal Reserve's policy, makes the decline understandable, he said.

The stock market slowdown comes amid a massive bull run fueled largely by the rise of artificial intelligence, raising concerns about a bubble forming that could signal an impending correction.

Meanwhile, the US government shutdown has entered its ninth day without much sign of progress in budget negotiations, delaying the release of key economic data. With the third-quarter earnings season just days away, the lack of market-moving catalysts has investors focusing on comments from monetary policymakers for clues on the Fed’s plans to cut interest rates by the end of the year. New York Fed President John Williams said in a speech on October 9 that he supports further rate cuts before the end of the year due to risks facing the labor market.

According to CME's FedWatch tool, financial markets are currently pricing in a 94.6% chance that the Fed will cut interest rates by 25 basis points at the end of its meeting on October 28-29.

Source: https://vtv.vn/chung-khoan-my-huong-den-mua-bao-cao-kinh-doanh-100251010081038987.htm