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The US stock market continued to display strong bullish momentum this week, with the S&P 500 closing at 6,744 points, up 0.13%. Investor confidence remains high as positive corporate earnings offset concerns around the banking sector and gold’s recent correction. Analysts suggest maintaining a bullish outlook in the short term, while keeping an eye on potential cooling before the upcoming Federal Open Market Committee (FOMC) meeting.
Earnings Boost Key Indices
Strong quarterly results from major companies have supported the market’s climb. Coca-Cola (KO) reported an adjusted Q3 EPS of $0.82 on revenue of $12.46 billion, exceeding estimates. The beverage giant achieved 6% organic revenue growth and expanded operating margins to 32%, pushing shares up 2–4% toward $73.90. 3M (MMM) also beat both sales and earnings forecasts, raising its full-year guidance and closing 7.7% higher, adding over 200 points to the Dow Jones Industrial Average.
Gold Enters Correction Phase
Gold prices entered a bearish pullback after reaching record highs near $4,380 per ounce earlier this month. Spot prices have since fallen as investor appetite for risk strengthens alongside a firmer dollar. The decline in safe-haven demand further reinforces the stock market’s bullish positioning.
Technical Levels and Market Signals
No immediate bearish correction is expected for major US indices. The Dow remains stable above 45,000, while traders are advised to monitor the orange trendline for signs of reversal. For Coca-Cola, analysts see resistance near $68, with upside potential between $70 and $73 if that level clears.
Broader Context and Outlook
Volatility remains muted, with the VIX showing lower highs and maintaining a compressed range. Historically, October favors modest S&P gains of around 1.4%. Market optimism is also supported by expectations of additional Federal Reserve rate cuts totaling 100 basis points by 2026.
Upcoming earnings from companies such as General Motors and Netflix, combined with steady macroeconomic growth, continue to highlight what analysts call “American Economic Exceptionalism.” With strong fundamentals and resilient sentiment, the US stock market remains positioned for continued strength heading into the end of 2025.
