4:20pm: Rate cut hopes
Stocks finished mostly higher on Wednesday, shrugging off lingering worries about US-China trade tensions and a government shutdown that shows no signs of ending.
The S&P 500 added 27 points, finishing at 6,671. The Nasdaq led the gains, climbing 148 points to 22,670, and the Russell 2000 rose 24 points, or 1%, to 2,520.
The Dow barely moved, slipping 17 points to close at 46,253, while
Wall Street got a boost from the start of earnings season. Bank of America reported a 23% jump in profit, following a summer of deal-making that lifted many big banks. Morgan Stanley posted an even stronger beat, with profits surging 45% in what its CEO called an “outstanding” quarter.
Investors were also encouraged by comments from Federal Reserve Chair Jerome Powell, who noted that “downside risks to employment appear to have risen,” fueling expectations that interest rate cuts could be on the way. Markets are now pricing in a rate cut later this month, with December’s odds jumping to around 96%.
Trade tensions with China remained a background concern. President Trump said he was weighing an embargo on Chinese cooking oil after China reduced purchases of US soybeans, following its sanctions on several US subsidiaries of South Korean shipbuilder Hanwha.
Treasury Secretary Scott Bessent tried to soothe nerves, noting that a meeting between Trump and Chinese leader Xi Jinping is still planned and hinting at a possible extension of the tariff pause.
Meanwhile, the government shutdown is poised to continue. The White House is preparing a list of federal programs for potential cuts and scrambling to ensure payments to military members and law enforcement.
3:45pm: Proactive news headlines
- Arizona Gold & Silver Inc (TSX-V:AZS, OTCQB:AZASF) has provided an update on ongoing metallurgical testing and core drilling at its Philadelphia project in Arizona.
- American Resources Corp (NASDAQ:AREC) announced it has priced a $40 million private placement of Class A common stock at $5.10 per share.
- Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) reported that it has closed its previously announced Listed Issuer Financing Exemption (LIFE) offering, consisting of 25 million flow-through (FT) company units priced at C$0.10 per FT unit.
- Algernon Health (CSE:AGN, OTCQB:AGNPF) said it had completed its name change from Algernon Pharmaceuticals as the Canadian healthcare company pivots its focus toward the Alzheimer’s disease diagnostic market.
- Nextech3D.AI (CSE:NTAR, OTCQX:NEXCF) has launched its AI Matchmaking and AI Event Assistant solutions for events worldwide, expanding its suite of intelligent tools designed to enhance networking, engagement, and operational efficiency at conferences, expos, and trade shows.
2:46pm: Market movers
- Hillenbrand Inc (NYSE: HI) announced on Wednesday an agreement to be acquired by private equity firm Lone Star Funds in an all-cash transaction valued at $32 per share, representing an enterprise value of about $3.8 billion. Shares surged almost 18%.
- Progressive Corp (NYSE:PGR) shares fell nearly 8% to $221.97 in late-morning trading on Wednesday after the insurance company reported third quarter 2025 earnings that fell short of Wall Street expectations.
- Dutch chip equipment maker ASML Holding NV (NASDAQ:ASML, ETR:ASME) said on Wednesday it is well positioned to navigate China’s new rare-earth export rules, as the company reported modest revenue growth and stronger-than-expected profits for the third quarter. Its shares were up 2.4% post-earnings.
- Papa John's International Inc (NASDAQ:PZZA)'s shares jumped almost 9% after Apollo Global Management submitted a new, higher offer to acquire the pizza chain.
- Morgan Stanley (NYSE:MS) shares were up almost 7% after the bank’s third quarter earnings beat Wall Street expectations across all divisions, driven by strong trading, investment banking, and wealth management performance.
- Bank of America Corp (NYSE:BAC) on Wednesday reported better than expected financial results for its third quarter 2025, propelled by a 43% increase in its investment banking revenue. Shares added 4.4%.
1:40pm: Dow in the red
US stocks pared earlier gains on Wednesday afternoon as geopolitical uncertainty and a government shutdown with no resolution expected soon weighed on sentiment.
The Nasdaq traded up 0.2%, the S&P 500 was flat, while the Dow Jones slipped 0.1%.
Earlier this month, trade tensions between the US and China escalated sharply in early October 2025 with President Trump imposing a 100% tariff on Chinese imports in response to China's new export restrictions on rare earth minerals, triggering significant market declines globally.
Despite the heightened rhetoric and retaliatory measures such as new port fees by China, both sides continue limited trade talks with a planned Trump-Xi meeting still expected later this month.
12:02pm: Bank earnings lift Wall Street
Better-than-expected earnings from US banks and renewed rate-cut hopes boosted Wall Street in the early afternoon.
The tech-heavy Nasdaq led the gains, up 0.5%, while the S&P 500 was up 0.4% and the Dow Jones added 0.1%.
"Bank earnings continue to provide proof of the strength of the US economy, with the IMF expecting more growth next year despite worries about the employment situation,” IG chief market analyst Chris Beauchamp said.
“Meanwhile, an upgrade for Nvidia has helped sentiment too, while investors took heart from ASML's earnings despite worries about China demand."
Kathleen Brooks, XTB research director, added that, while it is early days in the Q3 earnings season, “this is a fantastic start.”
“Although there is a lot of geopolitics and geoeconomic noise in the background, investors are focusing on the fundamentals, and so far this points to further gains for stocks as it boosts the market mood,” Brooks said.
10:52am: Gold at all-time high
The yellow metal continued its record run on Wednesday, topping $4,200 per ounce, while US stocks brushed off trade tensions as bank earnings impressed.
“Investors appear largely unfazed by renewed US–China trade tensions, brushing off President Trump’s latest warning on cooking oil imports. But this seems to have helped gold, if anything,” City Index market analyst Fawad Razaqzada said.
"Meanwhile, solid US bank earnings have bolstered confidence in corporate resilience, keeping equities supported despite the ongoing US government shutdown. The dollar’s pullback mirrors both improving global risk sentiment and dovish remarks from Fed Chair Powell, who suggested that rising labour market risks justify another rate cut.”
9:55am: Nasdaq and Russell 2000 lead gains
The Nasdaq and Russell 2000 indexes led the early Wednesday rally on Wall Street.
In initial trading, the Nasdaq jumped 1.1%, while the small and mid-cap index was up 1.4%.
The Dow Jones rose 0.8% and the S&P 500 was up 0.9%.
Top risers on the S&P were gain trader Bunge and investment bank Morgan Stanley.
8:15am: Wall Street eyes new records
Wall Street stock indexes are expected to reach new highs on Wednesday, led by tech stocks, as markets feel more bullish thanks to Federal Reserve comments enabling trade tensions to be shrugged off.
Nasdaq 100 futures were up almost 1%, while futures for the S&P 500 and Dow Jones are up 0.8% and 0.5%.
The previous session saw the Dow close up 0.4%, while the S&P and Nasdaq ended down 0.2% and 0.8% respectively, after battling back from a negative start into positive territory in the middle of the session.
Traders attributed the late dip in sentiment to a social media post from President Trump where he said he believed China was "purposefully not buying" US soybeans and that the White House is now "considering terminating business with China having to do with cooking oil, and other elements of trade, as retribution".
Investors appear to be treating beans and oil wrangles as superficial posturing, with the market appetite returning for tech stocks.
Risk is "back on the menu", said market analyst Fawad Razaqzada at City Index, although European markets are mixed.
"Markets are being driven by a delicate mix of optimism and caution this week. The dominant theme remains rate-cut expectations from the Fed, which have helped sustain risk appetite," he said, even though gold prices are also blazing to fresh record highs.
"Investors are largely shrugging off renewed US-China trade tensions, taking President Trump’s latest threat over cooking oil imports in their stride".
Upbeat US bank earnings have "reinforced confidence in the resilience of corporate America, keeping equities supported despite the ongoing US government shutdown".
Bank of America and Morgan Stanley both released earnings before the opening bell lifted the shares over 4% apiece in pre-market trading, as both sets of results beat Street expectations on stronger-than-expected trading in their investment banking arms.