On October 16th, Singapore time, US stocks continued to rise in Thursday morning trading, with the Nasdaq surging by 0.5%. Investors are assessing the strong earnings reports from banks amid an AI trading frenzy, alongside risks such as the US government shutdown and international trade tensions.
The Dow Jones Industrial Average climbed by 58.34 points, or 0.13%, to close at 46,311.65 points; the Nasdaq rose by 112.37 points, or 0.50%, to reach 22,782.45 points; and the S&P 500 index gained 16.40 points, or 0.25%, closing at 6,687.46 points.
Investors continued to focus on US corporate earnings reports on Thursday. Shares of J.B. Hunt Transport Services soared after the company reported earnings and revenue that exceeded Wall Street expectations; Salesforce provided a strong performance outlook at its annual Dreamforce conference. However, United Airlines' revenue fell short of forecasts.
On Wednesday, US stocks closed mixed, with the S&P 500 and Nasdaq ending slightly higher, bolstered by strong earnings from several major banks that boosted investor confidence.
The market has experienced increased volatility this week, exacerbated by escalating international trade frictions. The Cboe Volatility Index (VIX), often referred to as Wall Street's fear gauge, closed at 20.6 on Wednesday.
Since last Friday, when President Trump threatened to impose a 100% tariff on Chinese imports, followed by his announcement on Tuesday of a ban on edible oil trade with China, US stocks have seen continued fluctuations.
Treasury Secretary Yellen stated that the Trump administration plans to implement minimum pricing regulations across multiple sectors to combat market manipulation by foreign countries.
As the US government shutdown enters its third week, investors remain highly vigilant. The shutdown has led to a halt in the release of key economic data by federal agencies, limiting the information available to traders amid ongoing concerns regarding the labor market, consumer impacts from tariffs, high-interest rates, and historically elevated valuations.
Adam Turnquist, Chief Technical Strategist at LPL, noted that despite the S&P 500's record rise since early July, a closer examination of market breadth trends reveals a divergence in price movements compared to individual stock participation. AI trading has driven most of the recent gains in the S&P 500, with technology giants including NVIDIA, Alphabet, Apple, Broadcom, and Tesla contributing 60% of the total market returns from July 1 to October 14.
Turnquist remarked: "While trend models indicate that there are still more stocks in an uptrend than in a downtrend within the S&P 500, the narrowing gap highlights emerging cracks in the market foundation. These cracks could be repaired through broader market participation, but also underscore the increasing concentration risk associated with gains driven by a select few leading stocks."
Key Stocks: - Hewlett Packard Enterprise (HPE) has provided FY2026 earnings and cash flow guidance below expectations. - Salesforce has set a target to achieve over $60 billion in revenue by FY2030. - United Airlines reported better-than-expected Q3 earnings, but revenue fell short of projections. - Becton Dickinson (BDX) experienced revenue growth in Q4 but lowered its full-year sales outlook. - Daiwa expects increased demand for lidar in racing applications. - Nabors Industries announced a $25 million stock buyback program. - Pony.ai's Hong Kong IPO has received approval. - Taiwan Semiconductor Manufacturing Company (TSMC) reported record performance in Q3 and guidance that exceeds expectations for Q4. - ASE Group reported a 9% year-on-year revenue increase in September, with the new K18B facility officially commencing operations.