The S&P 500 Fluctuates as Traders Weigh Delta and Pepsico Earnings

U.S. stocks seesawed between modest gains and losses early Thursday but continued to hover near record levels, as investors evaluated a wave of corporate earnings to gauge the strength of the U.S. economy.

‍

The S&P 500 edged down just 0.1% around 9:44 a.m. in New York, holding close to its 33rd record high of 2025 set the previous day. The Nasdaq 100 slipped 0.3%, while the Dow Jones Industrial Average was little changed.

‍

Market participants focused on fresh quarterly reports from Delta Air Lines Inc. and PepsiCo Inc., both viewed as key indicators of consumer and travel demand heading into the final stretch of the year.

‍

Key Movers: Delta Leads the Pack, Tesla Under Pressure

Shares of Delta Air Lines soared 7.1%, making it the best-performing stock in the S&P 500, after the airline posted stronger-than-expected third-quarter earnings and predicted robust travel demand extending into 2026. The upbeat results helped lift sentiment across the airline sector.

‍

PepsiCo shares also gained, rising 0.5%, after the beverage and snack giant reported better-than-anticipated net revenue, buoyed by a rebound in its U.S. drinks division.

‍

Meanwhile, Tesla Inc. shares dropped 1.5% after U.S. auto safety regulators announced a probe into accidents linked to the company’s partial self-driving software. The investigation raised renewed concerns over the electric vehicle maker’s autonomous technology.

‍

On the other hand, Nvidia Corp. advanced 1.3% after Cantor Fitzgerald boosted its price target to a new Wall Street high, underscoring continued optimism around the chipmaker’s leadership in artificial intelligence and data center technologies.

‍

Overall market activity remained subdued as the U.S. government shutdown stretched into its ninth day, stalling several key economic releases that investors typically watch for clues on monetary policy and growth. The absence of data, including the monthly jobs report, has left traders relying more heavily on corporate earnings to assess the market’s direction.

‍

“With steady economic growth expected next year, we see room for continued earnings expansion across Corporate America,” said Jeff Buchbinder, chief equity strategist at LPL Financial. “That said, we do anticipate some margin pressure as tariff impacts begin to filter through over the next few months.”

‍

Analysts expect S&P 500 companies to report earnings growth of about 7.2% for the third quarter compared with last year, according to Bloomberg Intelligence. That projection marks the third-strongest pre-earnings forecast in four years, suggesting high expectations but also raising the risk of disappointment if results or outlooks fall short.

‍

Due to the shutdown, no major economic data was released on Thursday, leaving investors to focus on remarks from Federal Reserve Chair Jerome Powell, who spoke at a community banking event earlier in the day but refrained from commenting on monetary policy.

‍

Several other Fed officials, including Mary Daly, Michael Barr, and Neel Kashkari, were scheduled to speak later Thursday, potentially offering more insight into the central bank’s next steps.

‍

Meanwhile, New York Fed President John Williams reiterated support for additional rate cuts this year, noting he is monitoring the labor market closely as signs of slowing job growth have begun to emerge.

‍

Outside of major indexes, U.S.-listed rare earth and critical mineral stocks rallied sharply after China announced new export restrictions, a move that comes just weeks before a planned meeting between President Donald Trump and Chinese President Xi Jinping.

‍

Critical Metals jumped 14%, MP Materials climbed 6.3%, and other industry names like Energy Fuels, Ramaco Resources, and USA Rare Earth all advanced as investors bet on tightening global supply chains for strategic minerals.

‍

Costco Wholesale shares gained 2.2% after reporting stronger-than-expected September same-store sales, driven by an increase in both store traffic and average customer spending. The results reinforced the warehouse retailer’s reputation as a consumer favorite even amid persistent inflation.

‍

In biotech, Akero Therapeutics soared 17% after Novo Nordisk announced plans to acquire the drug developer for $54 per share in cash, plus a contingent value right worth $6 per share upon closing. The acquisition signals Novo’s continued push into metabolic and liver disease treatments.

‍

Serve Robotics Inc., an autonomous delivery company, rose 12% following news that DoorDash Inc. added it as a new robotic delivery partner, further validating its technology in the rapidly growing last-mile logistics market.

‍

Lastly, Neogen Corp. surged 19% after the food safety firm reported strong first-quarter earnings, supported by higher sales across its diagnostic and animal safety product lines.

‍

With the shutdown delaying key government data and rate expectations mostly steady, attention now shifts to earnings season, which begins in earnest next week. JPMorgan Chase & Co. will kick things off on October 14, setting the tone for the banking sector and potentially influencing broader market sentiment.

‍

Despite short-term uncertainty, analysts remain cautiously optimistic. Strong consumer spending, steady employment, and easing inflation continue to underpin the market’s record-breaking rally, even as investors stay alert to potential volatility in the weeks ahead.

‍