S&P 500 Confronts Geopolitical Uncertainties and Surging Yields.
The Nasdaq 100 and S&P 500 experienced a notable downturn in the past week, approaching multi-month lows, primarily in response to the surge in U.S. yields and escalating geopolitical tensions in the Middle East. The ongoing earnings season, which has recently commenced, has yielded mixed results, with banks and technology companies reporting satisfactory performances but failing to stimulate an upward trajectory in stock prices.
Given the rising yields and prevailing geopolitical uncertainties, the S&P 500 and Nasdaq 100 face a formidable challenge in maintaining their stability. To invigorate market sentiment and bolster confidence, Corporate America must produce robust results for the third quarter, ideally surpassing Wall Street's expectations.
What are the primary factors contributing to the recent downturn in the Nasdaq 100 and S&P 500, including their sensitivity to rising U.S. yields and escalating Middle East conflicts?