Wall Street Ends Mixed as the IMF Warns of Global Economic Stagnation

The main Wall Street indices ended Thursday’s session with mixed performances, reflecting a blend of quarterly earnings, economic data, and a sharp jump in Tesla’s stock.

The Dow Jones Industrial Average, which tracks 30 major companies, fell 0.33% to 42,374.36 points. Meanwhile, the S&P 500 rose 0.21% to 5,809.86 points, and the tech-heavy Nasdaq Composite climbed 0.76% to 18,415.49 points.

Tesla’s shares surged nearly 22% following its third-quarter earnings report, which exceeded expectations in profit and margins, although revenue came in slightly below forecasts. The electric vehicle maker’s strong performance lifted the Nasdaq and bolstered gains in the consumer discretionary sector, which rose 3.24%.

On the downside, the Dow Jones struggled, dragged down by IBM, which fell 6.17% after releasing its earnings, and Boeing, which dropped 1.18% as a major union rejected a new wage agreement, prolonging an ongoing strike. Within the Dow, Honeywell also posted significant losses, sliding 5.10%. The materials sector was the day’s weakest performer, falling 1.42%.

In other news, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), warned on Thursday that the world faces the risk of stagnating in a low-growth, high-debt path. According to Georgieva, this scenario could leave governments with fewer resources to improve living conditions or address challenges like climate change. She highlighted the growing dissatisfaction among populations as a key concern, speaking at a press conference during the IMF and World Bank annual meetings in Washington.

These meetings have been overshadowed by the looming U.S. presidential elections on November 5. Concerns are rising that persistent inflation under President Joe Biden’s administration could drive voters toward returning Republican candidate Donald Trump to the White House. Such a shift may usher in a new era of protectionist trade policies and increased U.S. debt, adding further uncertainty to global markets.