In a day of fluctuating sentiment, Indian stock markets responded to a blend of global influences. The robust earnings from US banks uplifted investor optimism, yet lingering trade disputes between the US and China loomed large over the scene. Additionally, statements from Federal Reserve Chair Jerome Powell regarding the economic outlook are adding layers of complexity to trading strategies.
Wall Street ended mixed on Tuesday as investors digested mostly positive quarterly results from big U.S. banks, comments from Federal Reserve Chair Jerome Powell and an ongoing U.S.-China trade war. The S&P 500 turned lower after U.S. President Donald Trump said Washington was considering terminating some trade ties with China, including in relation to cooking oil. A slew of major lenders reported solid results on strong performance in the investment banking segment, helping the S&P 500 banking index rally.
Wells Fargo closed 7.15% higher, its biggest one-day percentage gain since November 2024, and Citigroup jumped almost 4% after both lenders beat estimates for third-quarter profit. JPMorgan Chase raised its full-year forecast for net interest income and Goldman Sachs beat Wall Street expectations for quarterly profit. However, shares of both banks dipped about 2%. BlackRock’s assets under management hit a record $13.46 trillion, lifting its shares over 3%. Adding to concerns about the China-U.S. trade war, the two countries began charging additional port fees on ocean shipping firms that move everything from holiday toys to crude oil. Global equities were shaken on Friday after Trump threatened 100% tariffs on Chinese goods after Beijing imposed controls on the export of rare earth minerals, although he softened his tone over the weekend.
“The market is really struggling with where this shakes out,” said Ross Mayfield, an investment strategist at Baird Private Wealth Management. “If the (Trump) administration feels like ramping up these tensions again, the market looks pretty expensive right now for that sort of fight, especially if 100% tariffs and other measures are back on the board.” The U.S. labor market remained mired in its low-hiring, low-firing doldrums through September, though the economy overall “may be on a somewhat firmer trajectory than expected,” Powell said in remarks prepared for delivery at a National Association for Business Economics conference.
The S&P 500 declined 0.16% to end the session at 6,644.31 points.
The Nasdaq declined 0.76% to 22,521.70 points, while the Dow Jones Industrial Average rose 0.44% to 46,270.46 points.
Ten of the 11 S&P 500 sector indexes rose, led by consumer staples, up 1.72%, followed by a 1.17% gain in industrials.
Volume on U.S. exchanges was 20.1 billion shares, compared with an average of 20.2 billion shares over the previous 20 sessions. Walmart rose 5% after the retailer said it was partnering with OpenAI to enable customers and Sam’s Club members to shop directly within ChatGPT.
Gains in industrial stocks supported the Dow. Caterpillar jumped 4.5% after
JP Morgan raised its price target on the stock. The International Monetary Fund marginally lifted its 2025 global growth forecast, as tariff shocks and financial conditions have proven more benign than expected, while warning that a renewed U.S.-China trade war could slow output significantly.
Advancing issues outnumbered falling ones within the S&P 500 by a 3.4-to-one ratio.
The S&P 500 posted 23 new highs and 10 new lows; the Nasdaq recorded 123 new highs and 93 new lows.
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