GM and 3M Boost Dow, Netflix Slips on Earnings

The Euro edged lower against the US Dollar on Wednesday, with EUR/USD pair ending the session below 1.1600 as the Greenback gained momentum as renewed investor confidence as geopolitical tensions ease and hopes rise for a resolution to the ongoing US government shutdown.

White House Economic Advisor Kevin Hassett suggested that the shutdown could end “sometime this week,” while Senate Minority Leader Chuck Schumer noted that he and House Democratic Leader Hakeem Jeffries have reached out to President Trump to negotiate a reopening of the government.

Adding to the upbeat sentiment, reports indicate that President Trump will meet with Chinese President Xi Jinping next week to advance trade discussions.

With the US economic calendar relatively light this week, traders are turning their attention to the Bureau of Labor Statistics’ upcoming inflation report.

In Europe, attention is focused on upcoming speeches from European Central Bank (ECB) President Christine Lagarde and Vice-President Luis de Guindos, as the Eurozone’s data flow remains subdued.

The Euro continues to face headwinds as investors await fresh catalysts. Markets are widely expecting the Federal Reserve to lower interest rates by 25 basis points at next week’s meeting, bringing the target range to 3.75%–4.00%. Traders are also pricing in an additional 0.25% cut by December.

Gold prices tumbled on Tuesday, marking their steepest daily decline since 2020, as investors locked in profits following a record-breaking rally fueled by expectations of U.S. interest rate cuts and strong safe-haven demand.

The decline comes just a day after the precious metal surged to an all-time high capping a year-to-date gain of nearly 60%. The rally had been driven by ongoing geopolitical tensions, expectations of lower U.S. interest rates, and continued central bank purchases.

Moreover, a possible resolution to the ongoing U.S. government shutdown and progress on U.S.–China trade talks could lead to a period of price consolidation for gold over the next few weeks.

Silver mirrored gold’s decline, dropping 8.27%. Market participants are now focused on Friday’s delayed U.S. Consumer Price Index (CPI) report for September, which is expected to show a 3.1% annual increase. The data will be closely watched ahead of next week’s Federal Reserve policy meeting, where the central bank is widely expected to deliver a 25-basis-point rate cut.

Oil prices edged higher on Tuesday, recovering from five-month lows hit in the previous session as investors reassessed oversupply concerns and awaited clarity on trade relations between the United States and China — the world’s two largest oil consumers.

Both benchmarks had fallen to their lowest levels since early May on Monday, pressured by record U.S. production and the Organization of the Petroleum Exporting Countries (OPEC) and its allies maintaining plans for gradual supply increases.

The ongoing U.S.–China trade dispute remains a key factor shaping demand expectations. While investors fear that slowing global growth could weigh on oil consumption, both Washington and Beijing have recently signaled efforts to ease tensions.

A preliminary Reuters poll released Monday indicated that U.S. crude stockpiles likely rose last week, suggesting that the long-anticipated inventory build is beginning to emerge.

Separately, Bloomberg reported that the U.S. government plans to purchase one million barrels of crude oil for the Strategic Petroleum Reserve (SPR), a move that could provide limited near-term support for prices.

The US 30 closed at a record high on Tuesday, lifted by strong corporate earnings from major blue-chip companies including Coca-Cola, 3M, and RTX. Gains were capped, however, by a sharp decline in Alphabet shares following renewed competition concerns in the web browser space.

Coca-Cola shares climbed after the beverage giant reported better-than-expected third-quarter profit and revenue, citing resilient global demand despite describing market conditions as “challenging.”

3M Company gained more than 7% after the industrial conglomerate raised its full-year earnings and margin guidance, supported by stronger-than-expected quarterly results.

RTX Corp jumped after the aerospace and defense firm boosted its full-year outlook on the back of robust demand for missiles and aftermarket services. Meanwhile, Beyond Meat shares surged after the company announced plans to expand distribution of select plant-based products to over 2,000 Walmart stores nationwide.

Alphabet Inc. dropped more than 2%, weighing on the broader tech sector, after OpenAI unveiled a new AI-powered web browser called ChatGPT Atlas. The launch marks an escalation in browser competition, following the recent debut of Perplexity’s Comet browser, raising concerns over Alphabet’s market dominance.

Broader market sentiment was supported by renewed optimism surrounding both U.S. political and trade developments.

White House Economic Adviser Kevin Hassett told CNBC that the ongoing government shutdown “is likely to end sometime this week,” a statement that bolstered risk appetite after prolonged political gridlock had dampened confidence and delayed key economic data releases.