The S&P 500 closed higher Wednesday, underpinned by a wave of mostly better-than-expected quarterly earnings and growing expectations that the Federal Reserve will deliver its second rate-cut of the year later this month.
At 4:00 p.m. ET (20:00 GMT), Dow Jones Industrial Average fell 17 points, or 0.04%, S&P 500 rose 0.4%, and NASDAQ Composite climbed 0.7%.
Upbeat bank earnings continue The slew of bank earnings continued to surprise to the upside, lifting the broader sentiment on risk assets.
Bank of America (NYSE:BAC) raised the lower end of its interest income forecast and beat Wall Street estimates for profit, as its investment bankers benefited from a bumper third quarter.
Morgan Stanley (NYSE:MS) also impressed, with the banking giant’s profit rising in the third quarter as its investment bankers rode a resurgence in dealmaking.
Goldman Sachs (NYSE:GS) beat expectations, boosted by strong investment banking fees, while JPMorgan Chase (NYSE:JPM) raised its full‐year net interest income forecast after a robust quarter.
Wells Fargo (NYSE:WFC) also posted a profit beat, aided by higher deal activity and improved credit performance.
Beyond bank earnings, Dollar Tree (NASDAQ:DLTR) stock gained 8.3% after the discount retailer reaffirmed its near-term outlook and projected a strong three-year earnings growth trajectory in a release ahead of its 2025 Investor Day event in New York.
United Airlines (NASDAQ:UAL) is set to announce its latest figures after the closing bell on Wall Street, with investors keen to see how the carrier expects travel demand to evolve over the rest of the year.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Fed’s Miran calls for quick cuts after Powell’s dovish remarks Federal Reserve Governor Stephen Miran on Wednesday called for quick rate cuts, citing the economic risk of a further strain in U.S.-China trade relations.
"I think it’s incumbent on us as policymakers to think about the introduction of a new tail risk," Miran. “I think it’s even more important now than I did a week ago that we move quickly to a more neutral stance," he added.
The remarks arrived a day after Fed Chair Jerome Powell reinforced bets that the central bank will roll out rate reductions at its last two meetings of 2025, following its decision to slash borrowing costs by 25 basis points in September.
Powell said, during a speech at the National Association for Business Economics, that the outlook for employment and inflation “does not appear to have changed much” since the Fed’s September meeting. He signaled that the U.S. economy may be on a firmer trajectory than some expected, but cautioned that a notably softer labor market is emerging.
The tone was read by markets as dovish, supporting expectations of further rate cuts later in 2025.
In other news, dating app Grindr (NYSE:GRND) jumped more than 4% after announced it has received interest from its top shareholders about taking the company private.
U.S.-China tensions remain fraught Treasury Secretary added to fears of U.S.-China trade war, saying that the Trump administration isn’t likely to back down from its tough negotiating stance even if markets react negatively.
