US Equity Indexes Mixed as Strong Banking Results, Dovish Fed Soften Blow from China Trade Tensions

04:56 PM EDT, 10/15/2025 (MT Newswires) -- US equity indexes closed mixed on Wednesday as investors weighed strong quarterly results and a dovish policy signal from the Federal Reserve, against fragility in the Trump administration's trade relationship with China.

The Nasdaq Composite climbed 0.7% to 22,670.08, and the S&P 500 rose 0.4% to 6,671.06. The Dow Jones Industrial Average was little changed at 46,253.31. Real estate, communication services, and utilities were among the top gainers intraday. Industrials and materials led the decliners.

Morgan Stanley (MS) shares jumped 4.7%, among the top gainers on the S&P 500, after the company reported Q3 earnings and revenue above market expectations. Bank of America (BAC) also reported higher Q3 earnings and revenue, beating consensus estimates. Its shares advanced 4.4%, also among the outperformers in the S&P 500.

ASML Holding (ASML) , one of the biggest semiconductor manufacturers in the world, rose 2.7% after the company reported higher fiscal Q3 earnings and net sales.

President Donald Trump still expects to meet his Chinese counterpart, Xi Jinping, on the sidelines of the Asia-Pacific Economic Cooperation summit in South Korea at the end of October, according to media reports, keeping hopes alive that the recent escalation of tensions between the world's two largest economies will not result in a long-lasting trade war.

US Treasury Secretary Scott Bessent told CNBC on Wednesday that recent volatility in the stock market will not prompt Washington to change its trade stance on China.

On Wednesday, Fed Governor Stephen Miran advocated for an additional 1.25 percentage points in rate cuts, on top of the quarter-point reduction in September, arguing that current policy is "quite restrictive" and leaves the economy vulnerable to shocks, CNBC reported.

Federal Reserve Chair Jerome Powell said on Tuesday the unemployment rate remained low through August, but payroll gains have slowed sharply, setting the stage for rate cuts. "In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen."

According to the CME Group's FedWatch Tool, the probability of aggregate interest rate cuts of 50 basis points by the end of this year -- implying a 25 basis point cut in October and December -- stood at 94% as of Wednesday afternoon, compared with 79% a week ago.

Meanwhile, the partial federal government shutdown entered its third week and risks becoming the longest in US history, with House Speaker Mike Johnson saying that it will continue unless Democrats abandon healthcare demands, USA Today reported. The Senate on Wednesday for the ninth time rejected a GOP-led short-term funding resolution.

Gold futures traded 1.5% higher to $4,224.61, touching yet another all-time high earlier in the session, and silver futures soared 3.6% to $52.46, also marking a new record intraday.

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