The S&P 500 held near record highs, with the sustainability of AI investment and third-quarter earnings announcements becoming the focus. Higher oil prices and rising long-term interest rates also emerged as headwinds for the market.
In last week's market, the S&P 500 continued to rise, while the Nasdaq 100 also posted a modest gain. The S&P 500 hit a record high on 6 October, and the equal-weighted index rose 1.57% for the week, outperforming the standard S&P 500. By contrast, the Russell 2000 fell 0.9% for the week, indicating continued weakness among small-cap stocks.
Developments signaling continued demand for AI investment. AI-related stocks moved on reports concerning OpenAI's sales outlook, while Marvell Technology raised its multiyear revenue outlook and Lumentum Holdings reported demand strong enough to fill its supply capacity.
Higher oil prices and rising long-term interest rates weighed on equities. Brent crude rose above $100 per barrel, while the US 10-year Treasury yield rose to around 5.36% during the week and remained elevated at around 5.24% at the weekend.
This week, focus will be on the release of CPI and PPI data and third-quarter earnings, which will gather pace starting with the major banks. Investors will watch provisions for credit losses and consumer repayment trends in the results from JPM, WFC and C, while Goldman Sachs and Morgan Stanley are also expected to report expanding earnings.