Stocks Steady; Crude Oil Jumps On Russia Sanctions: Markets Wrap

US stocks were steady and European stocks hovered near a record peak as third-quarter earnings continued to flow in. Crude oil surged to a two-week high after US President Donald Trump imposed sanctions on Russia’s biggest producers.

Futures on the S&P 500 and Nasdaq 100 were little changed. Tesla Inc. slid in premarket trading after earnings missed estimates despite a sales surge. International Business Machines Corp. and Molina Healthcare Inc. tumbled after disappointing results. Among companies slated to report on Thursday are T-Mobile USA Inc., Blackstone Inc. and Intel Corp.

Brent crude surged more than 5% to trade above $65 a barrel after the US blacklisted state-run Russian giants Rosneft PJSC and Lukoil PJSC, threatening supplies and potentially sparking a reshuffling of global trade flows. The European Union also adopted new sanctions targeting Russian energy infrastructure. Refinery executives in India, a key buyer of Russian crude, said the restrictions would interrupt flows.

Earnings so far have been broadly positive, helping to support equities as a mix of macro fears injected a note of nervousness into global markets. The Trump administration said it’s considering curbs on software exports to China, risking another escalation of the trade dispute. Traders are also pinning their hopes on another Federal Reserve interest-rate cut later this month, even as they await delayed September inflation data due to be released on Friday.

“Because of the trade tensions, there was a narrative of caution going into third-quarter season and that has now abated, given the stronger numbers,” said Nina Stanojevic, an investment specialist at St James Place. “People were looking to this earnings season to see if there was any flow-through from the trade tariffs but it seems that the market has taken it in its stride so far.”

Gold turned positive after two days of steep declines as the Trump administration’s latest trade threats introduced fresh tension into US-China relations. The yield on 10-year Treasuries advanced four basis points. The dollar index was steady.

Stretched Valuations

While valuations on the S&P 500 appear stretched, drawdowns in recent weeks have been brief as investors look for better entry points. The “artificial intelligence ecosystem” and banks have shown strong earnings, according to Arun Sai, a senior multi-asset strategist at Pictet Asset Management.

“We’re seeing froth skimmed off the top, which so far I think is a healthy correction,” Sai said. “You still don’t have evidence to suggest there is anything fundamentally wrong with the US economy or with markets” given strong earnings and the lack of US government data, he said.

The Stoxx Europe 600 index edged higher, with energy stocks climbing more than 2%. Nokia Oyj jumped 10% after third-quarter profit blew past analyst estimates, driven by demand for artificial intelligence and cloud services. Gucci owner Kering SA surged after reporting better-than-feared sales. Software firm Dassault Systemes SE and gambling operator Evolution AB plunged after underwhelming results.

Among companies reporting in Europe on Thursday:

Unilever Plc’s third-quarter sales rose more than expected, driven by strong demand in developed markets.
Roche Holding AG raised its forecast for earnings this year, led by demand for medicines for auto-immune diseases and cancer.
Lloyds Banking Group Plc raised its outlook for net interest income despite forecasting slow UK economic growth and a fall in third-quarter earnings.
STMicroelectronics NV forecast fourth-quarter revenue that missed analysts’ expectations, signaling that a long-awaited recovery in the chip industry may be faltering.
SAP SE, Europe’s most valuable software company, reported third-quarter cloud revenue that missed analysts’ estimates in a sign that trade disputes and a weaker economy are weighing on sales.
Schroders Plc reported net inflows in the third quarter, helped by demand for its pensions services and alternatives funds.
Volvo Car AB reported better-than-expected profit as the automaker benefited from the effects of its 18 billion-kronor ($1.9 billion) cost-saving program.
Orange SA reported an increase in third-quarter revenue and raised its earnings outlook for the year after the French telecommunications company gained ground in its home market of France and in Africa and the Middle East.
Renault SA’s third-quarter sales rose, helped by demand for new models such as the Dacia Bigster as well as higher revenue at the company’s financial services arm.

Elsewhere, Chinese officials conclude their Fourth Plenum gathering in Beijing, with a readout expected later in the day. Treasury Secretary Scott Bessent is expected to huddle with his Chinese counterparts over the weekend ahead of the Trump-Xi talks.

The markets are jittery about the US-China tensions, and “though it could probably be just another TACO situation, and even though everyone knows that’s how it goes, there are still people who have to react until things settle down,” said Ryuta Otsuka, a strategist at Toyo Securities.

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