Market Analysis

U.S. stock index futures edged lower in Tuesday's evening trade, following a subdued day on Wall Street, as rising Treasury yields and anticipation of a closely contested presidential election heightened risk aversion.

Investors sifted through a mix of earnings reports, with attention shifting to Tesla's upcoming third-quarter results, due after the market close on Wednesday.

Geopolitical concerns in the Middle East, particularly the possibility of an Israeli strike on Iran, further dampened market sentiment.

As of 19:16 ET (23:16 GMT), S&P 500 Futures slipped 0.1% to 5,884.25 points, while Nasdaq 100 Futures fell 0.2% to 20,502.0 points. Dow Jones Futures dropped 0.4% to 43,015.0 points.

Tesla Q3 Earnings on the Horizon

Tesla Inc (NASDAQ), the world’s largest automaker by market value, is set to release its third-quarter earnings on Wednesday. Tesla is the biggest U.S. company to report this week, with nearly 20% of the S&P 500 scheduled to release results.

The EV maker's earnings come after a third-quarter delivery report that fell short of expectations. Additionally, the long-awaited unveiling of Tesla’s robotaxi failed to impress, contributing to the stock's significant decline in October.

Alongside Tesla, major names like AT&T Inc (NYSE), IBM (NYSE), Coca-Cola Co (NYSE), and Bank of America Corp (NYSE) are also set to release earnings on Wednesday.

Wall Street Pressured by Election Jitters, Rising Yields

U.S. stock indexes retreated from record highs this week, with Tuesday’s session ending relatively flat as higher Treasury yields unsettled investors. The 10-year Treasury yield surged to a near three-month peak as markets priced in a slower pace of interest rate cuts by the Federal Reserve, supported by data showing continued strength in the U.S. economy.

Uncertainty surrounding the upcoming presidential election added to market anxiety. Analysts forecast a tight contest between Donald Trump and Kamala Harris, with prediction markets showing Trump's chances improving.

On Tuesday, the S&P 500 dipped 0.1% to 5,851.20 points, while the NASDAQ Composite edged up 0.2% to 18,572.17 points. The Dow Jones Industrial Average ended the session flat at 42,924.89 points.

Aftermarket Movers: McDonald’s Drops, Texas Instruments Gains

In after-hours trading, McDonald’s Corporation (NYSE) dropped nearly 6% after the Centers for Disease Control (CDC) issued a warning about an E. coli outbreak linked to the chain’s quarter pounders, which resulted in 10 hospitalizations and one death across 10 states.

Meanwhile, chipmaker Texas Instruments Incorporated (NASDAQ) gained 3.9% following stronger-than-expected third-quarter earnings, although its outlook for the next quarter was less optimistic.

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