Stocks experienced a downturn on Friday, driven by surging oil prices and escalating inflation anticipations, wrapping up a volatile week on Wall Street with the S&P 500 dropping 0.50% and Nasdaq Composite falling 1.23%, while Dow Jones slightly rose by 0.12%. Amidst these market movements, oil prices soared over 6% due to geopolitical concerns regarding the Israel-Hamas conflict, and consumer sentiment dipped as per a University of Michigan survey, while positive earnings reports from major financial firms like JPMorgan Chase and Wells Fargo marked the onset of the third-quarter earnings season.
Throughout the week starting Monday, October 16, market volatility is expected with elevated short interest levels in various stocks, ongoing United Auto Workers strike negotiations with major automakers, and notable earnings reports from firms like Charles Schwab, Tesla, Netflix and others.Â
For Monday, increased short interest levels are observed in stocks like Fisker, Theravance Biopharma, and Novavax, indicating potential volatility. Options trading volume has surged on Virgin Galactic and Replimune Group. The United Auto Workers strike continues, and its prolongation could affect the auto sector, particularly Ford, General Motors, and Stellantis. Noteworthy companies like Charles Schwab and Equity Lifestyle Props are set to report earnings. Several investor events are scheduled throughout the week, including Charles Schwab's Fall Business Update and Equillium's Analyst & Investor Day. The WSJ Tech Live event will feature presentations from notable tech CEOs. The ending of the post-IPO quiet period for several stocks may lead to share price movements as analysts release ratings. Lastly, Philadelphia Federal Reserve Bank President Patrick Harker will discuss the economic outlook in a webinar.
