Wall Street Closes Higher Ahead of Key Earnings Reports
US stocks jumped on Monday at the start of a week which will see a number of major earnings reports, including two of the so-called Magnificent Seven. The S&P 500 and the Dow Jones both climbed by 1.1%, whilst the Nasdaq rose 1.4%
Keep reading to find out more about the most recent news.
Apple Hits All-Time High
Apple shares surged almost 4% to an all-time high on Monday, as the iPhone maker overtook Microsoft as the world’s second largest company.
Monday’s rally was fuelled by a report from Counterpoint Research, which found that the iPhone 17 had outsold its predecessor, the iPhone 16, by 14% during the first 10 days of availability in China and the US.
The base model iPhone 17 has apparently been a key driver for early sales, with Counterpoint Senior Analyst Mengmeng Zhang stating that it was “very compelling to consumers, offering great value for money”.
Investment bank Loop Capital upgraded Apple from hold to buy, raising its price target from $226 to $315 per share, and stating that the tech giant is positioned to rally as iPhone 17 demand exceeds expectations.
Chinese Economic Growth Slows
China’s economic growth eased in the third quarter, as official GDP expanded by 4.8%, its slowest pace in a year.
The latest figures come as trade tensions between the US and China have flared following Beijing’s decision to implement export controls on rare earths, a move which angered Washington and prompted President Trump to threaten China with tariffs of 100%.
However, US Treasury Secretary Scott Bessent is expected to meet Chinese officials in Malaysia later this week in a bid to repair relations and organise a potential meeting between Trump and Chinese President Xi Jinping.
China has relied increasingly on exports to fuel economic growth recently, amidst an ongoing property crisis and weak domestic demand. As well as weighing on growth, sluggish demand has resulted in deflationary pressure, with China’s Consumer Price Index (CPI) remaining in negative territory in September.
In September, China’s exports to the US fell by 27% compared to the previous year. However, global exports grew more than 8%, in a sign that China is diversifying away from the US market.
European Defence Stocks Stage Recovery
European defence stocks plunged on Friday, following news of an upcoming summit between US and Russian Presidents Donald Trump and Vladimir Putin in Budapest.
Defence stocks have been buoyed in 2025 as European members of NATO pledged to significantly raise defence spending in the coming years.
However, on Friday, many European defence stocks dropped sharply - with Rheinmetall, Hensoldt and Renk, amongst the worst affected, all falling by around 6%.
Nevertheless, the sector staged a recovery on Monday as European leaders reportedly neared a deal to use frozen Russian assets to secure a loan of €140 billion to Ukraine.
The aforementioned Rheinmetall, Renk and Hensoldt jumped by 5.9%, 6.8% and 7.9% respectively.
What to Look Out for This Week
Despite the ongoing US government shutdown, the Bureau of Labor Statistics (BLS) will belatedly publish September’s CPI report on Friday this week.
Elsewhere, earnings season is back underway, and this week will see a number of major companies report, including two of the Magnificent Seven. Below, we’ve highlighted some of the reports to look out for this week:
- Tuesday
- Netflix
- Coca-Cola
- Lockheed Martin
- Wednesday
- Tesla
- IBM
- Friday
- P&G
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