Stock market recap: Nasdaq Composite and S&P 500 fall, Asia rallies on Fed rate-cut hopes

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Nasdaq Composite and S&P 500 fall

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Global indexes

- S&P 500: 6,644.31 (–0.16%)

- NASDAQ Composite: 22,521.70 (–0.76%)

- Dow Jones Industrial Average: 46,270.46 (+0.44%)

- FTSE 100: 9,431.50 (–0.23%)

- Nikkei 225: 47,672.67 (+1.76%)

- Hang Seng Index (HSI): 25,910.60 (+1.84%)

- Shanghai Composite: 3,912.21 (+1.22%)

U.S. Markets: Mixed reactions to bank earnings and policy uncertainty

U.S. stock futures rose modestly on Wednesday following a series of upbeat earnings reports from major banks. The Dow Jones Industrial Average climbed 0.44%, while the S&P 500 slipped slightly and the Nasdaq Composite fell 0.76%, pressured by declines in large-cap technology stocks.

Investor attention remained focused on upcoming results from Bank of America and Morgan Stanley, following robust performances from peers earlier in the week. Outside the financial sector, United Airlines is also expected to release quarterly earnings.

Meanwhile, a government shutdown delayed the release of the Consumer Price Index (CPI), postponing key inflation data until next week. The Federal Reserve’s Beige Book and the New York Fed’s Empire State manufacturing survey remain on schedule, offering partial insight into U.S. economic resilience.

Fed Chair Jerome Powell signaled potential for a rate cut this month, citing softening labor market data — a move that has buoyed equity sentiment and supported gold prices, which advanced to roughly $4,200 per troy ounce.

European Markets: Inflation pressures temper gains

In Europe, major indexes edged higher after LVMH — parent of Louis Vuitton and Christian Dior — reported a surprise return to sales growth in the third quarter, lifting the Stoxx 600 by 0.7% to 568.25. French stocks outperformed regional peers amid improving corporate sentiment.

However, inflation data from France dampened enthusiasm. According to INSEE, consumer prices rose 1.2% year-over-year in September, marking the highest level in eight months and signaling persistent inflationary pressure in the Eurozone. The European Central Bank is expected to maintain its cautious stance until price growth moderates.

Asian Markets: Rebound on rate cut hopes and easing Chinese deflation

Asian markets rebounded after three consecutive sessions of losses, supported by growing optimism that the Federal Reserve may initiate further interest rate cuts. The Nikkei 225 jumped 1.76% to 47,672.67, reversing Tuesday’s decline triggered by domestic political uncertainty and U.S.-China trade concerns.

China’s markets also rallied as data showed deflationary pressures easing. The Shanghai Composite rose 1.22% and Hong Kong’s Hang Seng Index surged 1.84% after consumer prices in China fell 0.3% year-over-year in September, an improvement from –0.4% in August. Producer prices also stabilized, falling 2.3%, less sharply than the 2.9% decline a month earlier.

The recovery in Asian equities suggests renewed investor confidence, particularly as Beijing’s fiscal and monetary adjustments begin to show signs of impact.

Summary and outlook

The overall tone in global markets remains cautiously optimistic. Strong U.S. corporate earnings, easing deflation in China, and prospects of monetary easing by the Fed have provided support. However, persistent inflation in Europe and delays in U.S. economic data releases continue to inject uncertainty into short-term market direction.

Analysts note that investors will be closely watching upcoming earnings releases and central bank communications for clarity on policy trajectories. If inflation continues to stabilize and rate cuts materialize, equities could see renewed momentum heading into the final quarter of the year.

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