Market Highlights

Wall Street was shaken Wednesday as evidence of division at the Federal Reserve over the future of monetary policy whipsawed stocks and pushed bond yields higher. After the central bank delivered a widely anticipated rate cut, Chair Jerome Powell counseled against trying to predict whether another reduction was likely in 2025. His remarks reined in expectations in financialmarkets, with traders reducing bets on a quarter-point cut in December. Equities wavered after the closely watched meeting between Donald Trump and Xi Jinping wrapped up largely in line with expectations, helping shares hover near their record highs. A gauge of Asian shares edged 0.4% lower after setting a record high Wednesday. Futures for the US and Europe were flatafter President Trump said he had an “amazing meeting” with Xi and would reduce fentanyl tariffs. Contracts indicated modest gains for European stocks at the open. Shares in mainland China dipped 0.8% while the Topix Index in Japan rose 0.7% after the Bank of Japan held its policy rate.

A rally in the world’s largest technology companies sent stocks to all-time highs amid speculation that artificial intelligence will keep driving earnings for the group that has powered the bull market. While most shares in the S&P 500 took a breather after a torrid run, tech megacaps kept rising. Microsoft Corp. finalizeda new pact with OpenAI that will give the software giant a 27% ownership stake worth about $135 billion. Apple Inc. briefly topped $4 trillion while Nvidia Corp. Chief Executive Officer Jensen Huang dismissed concerns about an AI bubble Asian indexes advanced on optimism that artificial intelligence will continue to drive profits at megacap technology companies reporting earnings this week, amid growing bets on a Federal Reserve interest-rate cut.

Wall Street’s hopes the US and China are nearing a trade deal lifted riskier assets, with stocks hitting all-time highs amid a rally in crypto. As demand for safety waned, gold fell alongside short- term bonds. The S&P 500 climbed 1.2% as Chinese and US trade negotiators have lined up an array of diplomatic wins for Donald Trump and Xi Jinping to unveil at a summit this week. With further Federal Reserve interest-rate cuts on the way, the profit outlook is looking increasingly brighter. Global equities paused their record-breaking rally as investors braced for a flurryof earnings from megacap technology companies and policy announcements from major central banks this week.

Wall Street saw a relief rally as cooler-than-estimated inflation data reinforced trader conviction on Federal Reserve interest-rate cuts. Stocks extended their October advance, with the S&P 500 hitting fresh all-time highs amid speculation that policy easing will keep powering corporate earnings. An initial jump in Treasuries waned after manufacturing and service surveys underscored resilience in the world’s largest economy. The record-breaking rally in global equities found new impetus on signs the US and China were closing in on a trade deal, triggering gains in copper and oil. Treasuries dropped across the curve and gold slid as demand for the traditional safe havens waned.

A surge in oil prices rekindled concern about any impacts on inflation that could hinder the Federal Reserve’s ability to cut rates more aggressively, driving bond yields higher. Stocks rose amid solid earnings. In the run-up to a reading on consumer prices - the firstmajor report since the start of the government shutdown - crude jumped 5% as the US announced sanctions on Russia’s biggest oil companies in a bid to end the war in Ukraine. Treasury 10-year yields climbed three basis points to 3.98%. The S&P 500 hovered near 6,720. All megacaps but Tesla Inc. gained. The electric-vehicle giant lost 3.5% as profit plunged despite a record quarter of sales. The dollar wavered and Bitcoin gained.

Volatility resurfaced on Wall Street in a session that saw most megacaps getting hit while gold slid alongside cryptocurrencies. News reports saying the Trump administration is weighing restrictions on software exports to China added to recent anxiety around trade. Following a torrid rally, calls for a breather have emerged. The Nasdaq 100 lost 1% after a tepid outlook from Texas Instruments Inc. and a post-earnings slump in Netflix Inc. The S&P 500 closed slightly below 6,700 and The Russell 2000 of small caps lost 1.5%. Ahead of its results, Tesla Inc. slipped. Traders also kept a close eye on geopolitical developments, with Treasury Secretary Scott Bessent saying the US will ratchet up Russia sanctions. At a time when the equity rally has slowed, the flip side is that the proportion of companies beating earnings expectations this quarter is the highest since 2021. Most S&P 500 firmstypically top expectations, but this season stands out considering that analysts had set the bar higher.

The global stock rally stalled as investors weighed trade tensions and the potential impact of upcoming US inflation data while parsing the latest earnings news. Futures on the S&P 500 and Nasdaq 100 erased early gains, suggesting Monday’s Wall Street rally of more than 1% is set to fizzle.A gauge of the dollar rose for a third day as the greenback advanced against all Group- of-10 peers. Gold and silver slid in a strong retreat from recent highs as the dollar strengthened. Gold gained 0.3% after its worst intraday drop in more than a dozen years in the previous session. Silver also rose following Tuesday’s 7.1% fall.

Wall Street traders drove stocks higher amid solid signals from Corporate America and hopes that tensions between the world’s two largest economies are cooling. Bond yields edged lower. With the earnings season well underway, about 85% of the companies in the S&P 500 reporting results so far have beaten profit estimates. That’s helped fuel a rebound in equities, with the benchmark notching its best two-day gain since June. Sentiment was also buoyed by expectations the trade war will de-escalate as the US and China return to the negotiating table. The dollar advanced against all major peers and global shares came off their session highs as investors weighed trade tensions and the impact of upcoming US inflation data. MSCI’s all-country stock index erased earlier gains. Japanese shares all but wiped out an upward move as the pro-stimulus Sanae Takaichi won a key vote to become the nation’s prime minister. S&P 500 and European futures erased an earlier advance. Chinese shares rallied.

A jittery week on Wall Street ended on a positive note for stocks as President Donald Trump’s remarks soothed anxiety around trade tensions while regional banks rebounded. Bonds, gold and silver fell. The bounce in equities sent the S&P 500 to its best week since August, with Trump expressing optimism that talks with Chinese officials could yield an agreement to defuse the tariff spat between the world’s two biggest economies. A batch of solid results from various regional lenders lifted the industry after a rout triggered by concern over credit quality in the economy. Asian equities headed for a record close as signs of easing trade frictions helped boost sentiment after recent volatility tied to concerns about US regional banks.

Stocks extended declines as doubts over the credit health of regional US banks drove traders to cut down on risk, capping a volatile week that exposed the vulnerability of markets near record levels. Gold and bonds were major beneficiaries as investors rushed for havens. The S&P 500 headed for a second day of losses, with futures down 1.2% after two regional banks said they were victims of suspected fraud on loans tied to distressed property funds. European and Asian markets mirrored the US selloff. A gauge for European banking stocks fell more than 2%. Benchmark US bonds were set for their best week in more than a month, with 10-year yields falling another four basis points to 3.94% on Friday. Gold extended its record rally beyond $4,350 an ounce, while the yen and Swiss franc led gains among major currencies against the dollar.