New York stocks are expected to remain firm, led by defensive issues, with the Dow rebounding for the first time in 3 sessions. Sector rotation is advancing following the previous day's moves, while lower long-term interest rates are also likely to support the market.
In the previous day's New York market, the Dow Jones Industrial Average rebounded to finish up 556.21 points, or 1.08%, while the Nasdaq Composite fell as much as 1.44% before ending up 0.08%. Excessive caution toward AI-related investment and concerns over memory semiconductor supplies weighed on the market, while sector rotation from technology stocks into defensive stocks intensified.
Market participants cited the sharp decline in the U.S. 10-year Treasury yield as a factor supporting the market. Among individual stocks, Nike, Salesforce and Home Depot rose, while Cisco Systems and NVIDIA fell.
The U.S. September Import Price Index and September industrial production data are due this evening, while major companies are expected to continue reporting earnings. Travelers, Citizens Financial and Regions Financial are scheduled to report before the opening bell, and their results could influence the market.