Wall Street focuses on inflation data and earnings after record week

US stock markets concluded a record-setting week with major indices reaching new all-time highs. The S&P 500 closed at an all-time high on Tuesday, October 6, and finished the week with gains, alongside the Dow Jones Industrial Average and the Nasdaq Composite. This occurred despite the 10-year Treasury yield recently reaching its highest level since 2002.

Significant market movers last week were driven by company-specific news. SpaceX's agreement to acquire nationwide spectrum licenses from Grain Management impacted wireless carriers, leading to sharp declines for T-Mobile US, AT&T, and Verizon, while tower operators Crown Castle and American Tower saw gains. Healthcare company Humana's positive Medicare ratings update and adjusted earnings guidance, along with Delta Air Lines's strong quarterly results and outlook, also captured investor attention. Consumer staples company PepsiCo reported increased net revenue for its third quarter.

The broader economic backdrop remains challenging, with the Federal Reserve having raised its benchmark rate in September and oil prices trading above $90 per barrel. Consumer expectations for inflation over the coming year have also ticked up. The upcoming week will see the release of the Consumer Price Index and Producer Price Index for September, alongside the start of third-quarter earnings reports from major US banks.

Looking ahead, the market faces a shortened bond trading week due to the Columbus Day holiday on Monday. Investors will closely monitor the inflation data releases and the initial wave of corporate earnings reports for insights into the ongoing economic conditions and corporate performance.