Nasdaq 100 futures rebounded on Thursday, buoyed by a 12% jump in Tesla’s stock price in after-hours trading. Tesla reported better-than-expected third-quarter profits and boosted overall earnings significantly as $739 million in auto regulatory credit income boosted its overall profitability. Meanwhile, S&P 500 futures edged higher, while Dow Jones futures continued to move lower. On the other hand, IBM shares fell nearly 3% in after-hours trading as revenue from its consulting and infrastructure divisions fell short of expectations.

Market review

•⁠ ⁠Wednesday’s regular trade: The Dow Jones fell 0.96%, the S&P 500 fell 0.92%, and the Nasdaq Composite fell sharply by 1.6%. These declines were largely attributed to the continued pressure on equities from rising Treasury yields and investors’ cautious sentiment during the third-quarter earnings season.
•⁠ ⁠Bond market volatility: The yield on the benchmark 10-year United States Treasury rose to 4.25%, driven by strong economic data and a cautious approach from Fed officials about the pace of future rate cuts.

Market drivers

1.⁠ ⁠Tesla’s earnings performance: Tesla’s strong rebound in better-than-expected profits and regulatory credit income has provided some support to the technology sector.
2.⁠ ⁠Impact of Treasury yields: Rising Treasury yields are putting pressure on market valuations, especially on growth technology stocks.
3.⁠ ⁠Progress of the earnings season: Markets are digesting the results of this week’s earnings report, including today’s upcoming results from companies such as UPS, United States Airlines and Northrop · Grumman.

Future focus

•⁠ ⁠Earnings release: Today’s earnings results will be a key driver of market volatility, especially as corporate earnings performance and future guidance are in the spotlight amid ongoing bond market stress.
•⁠ ⁠Macroeconomic data and policy developments: With Treasury yields climbing and Fed officials talking, markets will be keeping a close eye on upcoming economic data releases to gauge the direction of monetary policy going forward.

Market sentiment and direction

Market sentiment remains cautious at the moment, weighed down by rising Treasury yields and uncertainty over the earnings season. While Tesla’s strong performance has given the tech sector some boost, the overall market is likely to remain volatile in the near term.

20,221 points of resistance above the first line and 20,500 points of resistance above the second line,
The lower first line support is 20,069 points, and the lower second line support is 19,631 points.

Risk Disclaimer: This report is for informational purposes only and does not constitute financial advice. All investments involve risk and past performance is no guarantee of future results. Please consult your financial advisor for personalized investment advice.