US Stock Market: Dow Jones, Nasdaq, S&P 500 Log 1% Weekly Gains Ahead Of Big Banks Earnings; What To Expect In Wall Street?

The US stock market witnessed a strong weekly performance last week, with Dow Jones and S&P 500 indices logging around 1% gains each. The Nasdaq Composite also soared above 0.5% in weekly performance. Expectations of strong earnings ahead have likely fueled bullish sentiment with major focus on big banks next week. However, elevated treasury yields and crude oil prices coupled with Iran conflict will continue to drive sentiment on Wall Street ahead.

Dow Jones + Nasdaq + S&P 500

On October 9th, the Dow Jones Industrial Average or DJIA index surged by 423.31 points or 0.83% to close the week at 51,654.95. The S&P 500 index rose by 0.6% or 46.18 points to end at 7,811.54 and the Nasdaq Composite index gained by 0.64% or 172.83 points to close at 27,366.17.

US stock indices closed higher on Friday amid expectations of a strong earnings season. The S&P 500 rose 0.6%, the Nasdaq 100 gained 0.5%, both nearing their record highs, while the Dow added 423 points. Robust results across sectors have helped drive equity returns this year. Wall Street’s largest banks are expected to report nearly $19 billion in stock-trading revenue when they release quarterly earnings next week, as per Trading Economics.

Among banking stocks, Goldman Sachs rose 1.4% which is forecasted to report $5.1 billion stock-trading revenue on Tuesday ahead. Meanwhile, Morgan Stanley also rallied by 1.4% on expectations of $4.9 billion revenue. JP Morgan and Bank of America is likely to generate revenue of $4.5 billion and $2.6 billion respectively.

Additionally, AI hyperscalers also surged on expectations of OpenAI to surpass $70 billion in annualized revenue by 2026-end. Other tech stocks like Microsoft and Amazon soared 2.4% and 3.3% respectively.

US Stock Market Weekly Wrap:

Overall for the week, Dow Jones surged 456 points or 0.90%, while S&P 500 outperformed with 81 points or 1.04% gains and Nasdaq rallied 140.24 points or 0.52%.

As per Justin Khoo, Senior Market Analyst – APAC, VT Markets, the September FOMC minutes reinforce a hawkish outlook, with 16 of the 18 officials anticipating another rate increase in 2026 to prevent inflation from remaining persistently above the Fed’s 2% target. However, softer-than-expected PCE inflation and a weaker employment report, with nonfarm payrolls rising by just 29,000 and unemployment edging up to 4.2%, have reduced the likelihood of an immediate October hike. The US 10-year Treasury yield has climbed above 5.3%, adding to borrowing costs and making financial conditions more restrictive. The upcoming September CPI report, scheduled for October 14, will be an important indicator of whether inflation pressures are continuing to ease.

In the currency market, Justin highlighted that the US dollar index appears to be consolidating ahead of next week’s inflation report, while EUR/USD is retesting the 1.1150 area and GBP/USD has found support around 1.3180. USD/JPY remains in consolidation, while USD/CHF has encountered resistance at 0.8381. AUD/USD’s upward move has been weak, NZD/USD is consolidating, and USD/CAD continues to test its swing high at 1.42477. Expectations of further US monetary tightening could support the dollar, although incoming data will remain central to the market’s assessment of the Fed’s next move.

Meanwhile, in commodities, Justin said, US oil has moved higher after breaking below the 89.002 low, with 94.50 the next level to monitor. Gold has rebounded from the lower end of the 4,080 monitored area, while silver has recorded a new swing low and could move higher. Natural gas has recovered strongly above 3.05 and may consolidate before attempting another move up. Bitcoin has traded below the 82,085 monitored area, while the S&P 500 has turned lower after recording a new all-time high. The Nasdaq could consolidate as Q3 2026 earnings season approaches. Overall, markets will remain sensitive to the upcoming US inflation data, Treasury yields and the evolving outlook for interest rates, with currency, commodity and equity movements reflecting the balance between persistent inflation risks and signs of a cooling labour market.

Also, Hariselvan Radhakrishnan, Founder & CEO of HST Wealth said, U.S. inflation and retail-sales data will influence the direction of Treasury yields and the dollar. Stronger-than-expected readings could reinforce expectations of further Federal Reserve tightening, sustaining pressure on emerging-market currencies and foreign portfolio flows. Conversely, softer inflation or signs of moderating consumer demand could pull yields lower and provide Indian equities with a firmer foundation for recovery than Friday’s short-covering bounce.

He added, Brent crude settled at $104.72 a barrel after trading in a range of roughly $102.50-$105, while the U.S. 10-year Treasury yield ended near 5.24%. Persistently elevated crude prices would continue to add pressure on the rupee and domestic inflation expectations, with a sustained decline below $100 needed to provide meaningful macroeconomic relief. Developments involving Iran and regional oil infrastructure therefore remain a key source of market risk.

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