[New York Stock Exchange] All Three Major Indices Rise as Apple Hits All-Time High... Boosted by Earnings and Hopes for End of Shutdown

Strong iPhone 17 Sales Drive Apple to Record Highs
Optimism Over Q3 Earnings and Fed Rate Cut
White House: "Shutdown Likely to End This Week"
Trump Reaffirms Plan for U.S.-China Summit Next Week
Tesla Earnings and September CPI Data Due This W

On October 20 (local time), all three major U.S. stock indexes rose simultaneously. Investor sentiment was boosted by Apple’s share price hitting an all-time high on the back of strong iPhone 17 sales, growing expectations for major corporate earnings, and the possibility of an end to the U.S. federal government shutdown (temporary work suspension). The market is now closely watching inflation data set to be released later this week.

On the 20th (local time), traders are working on the trading floor of the New York Stock Exchange (NYSE) in the United States. Photo by Reuters Yonhap News

On this day at the New York Stock Exchange, the blue-chip Dow Jones Industrial Average closed at 46,706.58, up 515.97 points (1.12%) from the previous session. The large-cap S&P 500 index rose by 71.12 points (1.07%) to 6,735.13, while the tech-heavy Nasdaq index climbed 310.568 points (1.37%) to finish at 22,990.543.

Apple’s stock surged nearly 4%, leading the positive investor sentiment. Apple closed at $262.24 per share, up 3.94% from the previous session, reaching a new all-time high. This was influenced by Loop Capital upgrading its investment rating on Apple from “hold” to “buy” and significantly raising its target price from $226 to $315. The firm explained, “Apple is at the start of a long-anticipated new iPhone product cycle, which means iPhone shipments are expected to continue expanding through 2027.”

The White House’s indication of a possible end to the government shutdown, now in its third week since October 1, also energized the market. Kevin Hassett, Chairman of the White House National Economic Council, said in a CNBC interview, “There is a high chance the shutdown will end this week. Moderate Democratic lawmakers will step up to reopen the government, and once that happens, negotiations on their desired policies can proceed through normal procedures.” He also warned that if the shutdown is not resolved, stronger measures would be taken to bring Democrats to the negotiating table.

After experiencing severe volatility last week, the stock market started the first trading day of this week on a positive note. Last week, investor caution was heightened by renewed U.S.-China trade tensions and concerns over the potential insolvency of regional banks. However, as the third-quarter earnings season kicks off in earnest and expectations for a Federal Reserve rate cut rise, investor sentiment is rebounding rapidly.

According to Bank of America, 58 S&P 500-listed companies have reported earnings so far, with 76% exceeding market expectations. This is an improvement from the second quarter’s 73%. This week, earnings reports from Netflix, Coca-Cola, Tesla, and Intel are scheduled for release.

Investors are also paying attention to the potential easing of U.S.-China trade tensions. President Donald Trump said the U.S. would reach a fair trade agreement with China, raising market expectations. During a summit with Australian Prime Minister Anthony Albanese at the White House, Trump told reporters, “I maintain a very good relationship with President Xi Jinping of China, and we are scheduled to meet in Korea in a few weeks. When we leave Korea, we will have a very strong trade agreement. I don’t think any conflict will occur.” Amid rising concerns over renewed U.S.-China trade tensions due to China’s tightening of rare earth exports and the U.S. announcement of an additional 100% tariff on Chinese goods, Trump’s remarks are seen as suggesting that the leaders of both countries may seek a breakthrough at the U.S.-China summit to be held during the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju, South Korea, at the end of this month.

Jamie Cox, Managing Partner at Harris Financial Group, analyzed, “The market is moving away from the panic over the ongoing tariff drama with China and the government shutdown impasse. Now, it is focusing much more on monetary policy and corporate earnings, which have far more positive and significant implications.” He added, “The market is expanding, and it would be wise for investors to take advantage of these opportunities while they last.”

The key economic indicator to be released this week is the Consumer Price Index (CPI) for September. Initially scheduled for release on October 15, the CPI was postponed to October 24 due to the government shutdown. According to market forecasts, last month’s CPI is expected to rise 3.1% year-on-year, up from 2.9% in August. Ahead of the Federal Open Market Committee (FOMC) regular meeting on October 28-29, the Federal Reserve is expected to closely examine labor market and price trends and reflect them in its decision on the benchmark interest rate.

U.S. Treasury yields remained steady. The yield on the 10-year Treasury note fell by 2 basis points (1bp = 0.01 percentage point) from the previous session to 3.98%, while the yield on the 2-year Treasury note hovered at 3.46%, unchanged from the previous session.

By stock, Amazon rose 1.61% after experiencing a service outage and recovery for its cloud service, Amazon Web Services (AWS). Zions Bancorporation and Western Alliance, which revealed loan delinquency issues last week, jumped 4.69% and 4.03%, respectively. Tesla climbed 1.85%. In contrast, Nvidia and Oracle fell by 0.32% and 4.87%, respectively.