Stock market today: Dow, S&P 500, Nasdaq waver as Fed cuts rates, Powell says December cut is 'far from' certain

US stocks erased gains on Wednesday after the Federal Reserve's decision to cut interest rates for the second time this year. Stocks turned negative after Fed Chair Jerome Powell indicated a December rate cut is "far from" a forgone conclusion.

The S&P 500 (^GSPC) fell as much as 0.5%, while the tech-heavy Nasdaq Composite (^IXIC) dropped 0.2%, following a strong session that lifted stocks to fresh all-time highs. The Dow Jones Industrial Average (^DJI) also slipped 0.3%.

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The central bank delivered a quarter-point rate cut on Wednesday afternoon, but Powell was reluctant to signal another rate cut would come at its December meeting.

Meanwhile, Nvidia (NVDA) stock jumped after President Trump stoked optimism for an easing in the curbs that have weighed on its sales in China. Trump said he may bring up Nvidia's Blackwell AI processors in his highly anticipated meeting with Chinese President Xi on Thursday.

The gains pushed the AI chipmaker's market value above $5 trillion, making it the first company in history to pass that milestone. The upswing comes after Nvidia shares closed at a record high on Tuesday as investors welcomed a flood of announcements from its GTC event.

The countdown is now on for earnings from "Magnificent Seven" tech megacaps, led out after the bell on Wednesday by reports from Alphabet (GOOG), Meta Platforms (META), and Microsoft (MSFT). Quarterly results from Apple (AAPL) and Amazon (AMZN) follow on Thursday.

Analysts expect another round of hefty data center spending, though the focus will be on how much continued investments in AI are paying off. Any disappointment could drag on the broader market.LIVE22 updates

9 mins ago

Allie Canal

Powell: December cut is 'not a foregone conclusion'

Fed Chair Jerome Powell made clear that "no decision has been made" about whether the central bank will cut interest rates again in December.

“A further reduction in the policy rate at the December meeting is not a foregone conclusion. Far from it,” Powell said during the post-decision press conference on Wednesday, adding that “policy is not on a preset course.”

That comment underscores the division within the Fed as the decision came with two dissents — Fed Governor Stephen Miran, who opposed the move because he wanted a larger 50-basis-point cut, and Kansas City Fed President Jeff Schmidt, who preferred to hold rates steady.

According to Powell, policymakers are grappling with “two-sided risks” with inflation risks tilted to the upside and labor market risks tilted to the downside.

Powell acknowledged there were “strongly differing views about how to proceed” among committee members.

Stocks dropped following the comments as traders had been consistently pricing in another rate cut in December.

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Grace O'Donnell

Fed Chair Powell begins speaking...

Federal Reserve Chair Jerome Powell has begun speaking at the press conference following the central bank's decision to cut interest rates by 25 basis points. Read more about the decision here.

"Although some important federal government data have been delayed due to the shutdown, the public and private sector data that have remained available suggests that the outlook for employment and inflation has not changed much since our meeting in September," Powell began. "Conditions in the labor market appear to be gradually cooling, and inflation remains somewhat elevated."

For Powell's full comments, watch the livestream below or here: 41 mins ago

Ines Ferré

The Fed rate cut decision had 2 dissents for 2 different reasons

The Fed's decision on Wednesday had a 10-2 vote, with two members dissenting — but for different reasons.

Fed governor Stephen Miran opposed the cut because he wanted a bigger 50 basis point reduction.

Meanwhile, Kansas City Fed president Jeff Schmid, who voted for a cut in the last meeting, said he preferred not to cut rates at all this time around. 52 mins ago

Ines Ferré

Fed cuts benchmark interest rate by 25 basis points as expected

The Federal Reserve cut its benchmark interest rate by a quarter point on Wednesday, marking the second consecutive reduction this year as officials navigate policy decisions without much official government data.

While a cut today was baked into stocks, investors will be looking for clues from Fed Chair Jerome Powell during the press conference, which starts at 2:30 p.m. ET, about the future direction of the central bank's monetary policy and its dual mandate for the labor market and price stability. Today at 5:30 PM UTC

Laura Bratton

Alphabet set to report Q3 results as Wall Street weighs AI cloud deals, Google Search competition from OpenAI

Google parent company Alphabet (GOOG, GOOGL) is set to report its third quarter financial results after the bell Wednesday as investors scrutinize how the AI boom is helping — and potentially hurting — the tech giant.

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Alphabet is expected to report quarterly revenue of $99.85 billion, according to consensus estimates from Wall Street analysts tracked by Bloomberg, up 13% from $88.3 billion in the same period last year.

Analysts forecast the company will report adjusted earnings per share of $2.26 for the third quarter, a 7% increase from the company's $2.12 adjusted EPS in the year-ago period. That would represent its lowest earnings growth in more than two years, in part due to a recent antitrust fine from the European Commission.

Alphabet has increasingly shown that it's a beneficiary of the AI boom, as its Gemini AI models have gained popularity and big-name AI developers have signed up to use its cloud services. At the same time, AI chatbots led by OpenAI's (OPAI.PVT) ChatGPT pose risks to its core Search business.

Read the full story here. Today at 4:47 PM UTC

Grace O'Donnell

Fiserv stock plunges. New CEO launches an executive shakeup.

Yahoo Finance's David Hollerith reports:

Read more here. Today at 4:30 PM UTC

Grace O'Donnell

Caterpillar stock surges as Q4 outlook eclipses greater tariff impact

Caterpillar stock (CAT) surged over 12% on Wednesday, boosting the Dow, after the company reported a third quarter earnings beat and a better-than-expected fourth quarter outlook that outshone the increased impact from tariffs.

The mining and construction machinery maker recorded adjusted profits per share of $4.88, which was above analysts' estimates of $4.52, according to S&P Global Market Intelligence. The Energy & Transportation segment was a bright spot, with both sales and profits rising 17% versus the third quarter of 2024.

"With a record backlog, strong order rates, and continued growth in sales to users, our outlook has improved since last quarter," CEO Joseph Creed said. "For the fourth quarter, we anticipate strong sales growth versus the prior year."

However, Caterpillar said tariffs affected all three of its business segments during the quarter. Going forward, Caterpillar adjusted its forecast for tariff impacts to be between $1.6 billion and $1.75 billion for the full year. Previously, Caterpillar guided for a hit of $1.3 billion to $1.5 billion.

Read more live coverage of corporate earnings. Today at 4:15 PM UTC

Laura Bratton

Starbucks to report earnings as investors eye progress on turnaround efforts

Yahoo Finance's Brooke DiPalma reports:

Read the full story here. Today at 3:30 PM UTC

Laura Bratton

Amazon says Anthropic will use 1 million of its custom AI chips

Amazon (AMZN) said Wednesday that it has completed a massive data center project and that Anthropic (ANTH.PVT) is set to use 1 million of its custom chips by the end of 2025.

The news comes as AI chip competition heats up among Big Tech companies. Anthropic said last week it will use 1 million of Google's (GOOG, GOOGL) custom chips, called TPUs, or tensor processing units. That multibillion-dollar Google Cloud deal has raised questions about Amazon and Anthropic’s relationship going forward.

"It's a big deal for Amazon because there's this market perception and fear around ... whether or not they have the same infrastructure AI advantage Google has," Hedgeye Risk Management analyst Andrew Freedman said. He added that the deal likely represents multiple billions of dollars in annual revenue to Amazon Web Services.

Amazon shares fell fractionally Wednesday. The tech giant is set to report earnings after the bell Thursday. Alphabet stock climbed less than 1%, and the Google parent company will report earnings after the bell Wednesday.

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Read the full story here. Today at 2:43 PM UTC

Laura Bratton

Fed set to cut interest rates as government shutdown muddies data picture

Yahoo Finance's Jennifer Schonberger reports:

Read the full story here. Today at 2:10 PM UTC

Laura Bratton

Nvidia becomes first $5 trillion company in history as Trump comments, GTC reveal boost stock to new heights

Yahoo Finance's Dan Howley reports:

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Read more here. Today at 2:00 PM UTC

Karen Friar

The next chapter in OpenAI's dealmaking frees it to make even more

It didn't take long for OpenAI (OPAI.PVT) to get out from under Microsoft's (MSFT) shadow, writes Yahoo Finance's Hamza Shaban.

He reports in today's Morning Brief:

Read more here. Today at 1:43 PM UTC

Laura Bratton

Stocks rise at the open, eye fresh records

US stocks rose at the market open on Wednesday, headed toward fresh record closing highs.

The S&P 500 (^GSPC) added 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) gained roughly 0.7%. The Dow Jones Industrial Average (^DJI), which includes fewer tech names, also nudged up 0.3%.

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Stocks rose as investors awaited a policy decision from the Federal Reserve later in the day, amid high expectations for an interest-rate cut The Nasdaq led gains as Nvidia (NVDA) shares climbed, making the AI chipmaker the first $5 trillion company in history. Today at 1:04 PM UTC

Grace O'Donnell

Etsy taps insider as new CEO. The stock is tumbling.

Etsy (ETSY) stock dropped about 9% in premarket trading after the online marketplace announced a shake-up in its C-suite.

Etsy has tapped its current president and chief growth officer, Kruti Patel Goyal, to lead the company, replacing Josh Silverman, effective January 1. Silverman, who has been with the company for eight years, will transition to the executive chair role until his departure.

The company also said its board chair, Fred Wilson, who has served in that role since 2017, will step down as chairman but will continue to serve on Etsy's board.

Also on Wednesday, Etsy reported third quarter earnings that beat on the top and bottom lines, though slowing demand hurt the company's core sales. Read live coverage of corporate earnings here. Today at 12:15 PM UTC

Grace O'Donnell

Boeing posts Q3 revenue beat, improving cash flow burn rate as turnaround plan takes off

Yahoo Finance's Pras Subramanian reports:

Read more here. Today at 12:04 PM UTC

Karen Friar

Trump's team touts 'deal framework' with China. It's unclear what China will demand in return.

Yahoo Finance's Ben Werschkul reports:

Read more here. Today at 12:02 PM UTC

Jenny McCall

Good morning. Here's what's happening today.

Please note some economic data will not be released due to the shutdown.

Economic data: MBA mortgage applications (week ended October 24); Wholesale inventories, (September preliminary reading); Advance goods trade balance (September); Retail inventories,(September); Pending home sales (September); Pending home sales (September); FOMC rate decision

Earnings calendar: Microsoft (MSFT), Alphabet (GOOG), Meta (META), Caterpillar (CAT), ServiceNow (NOW), Boeing (BA), Verizon (VZ), KLA Corporation (KLAC), Banco Santander (SAN), UBS Group (UBS), Automatic Data Processing (ADP), CVS (CVS), Starbucks (SBUX), Equinix (EQIX), Agnico Eagle Mines (AEM), Fiserv (FI), American Electric Power Company (AEP), Equinor (EQNR), Chipotle (CMG), Phillips 66 (PSX), eBay (EBAY), Entergy Corporation (ETR), Carvana (CVNA), Prudential (PRU), Kraft Heinz (KHC), American Water Works Company (AWK)

Here are some of the biggest stories you may have missed overnight and early this morning:

Nvidia jumps as Trump fuels hopes for China Blackwell sales

One big question hangs over Trump's vaunted China deal

Trump seeks to cut fentanyl tariff, discuss Nvidia in Xi talks

The Fed's decision is on deck. Here's what to expect.

Trump lambasts Fed's Powell again over interest-rate cuts

Why OpenAI is now closer to becoming 'Magnificent'

Boeing beats on Q3 revenue as turnaround plan takes off

Verizon beats estimates for quarterly subscriber additions, profit

US and South Korea seal trade deal Today at 11:30 AM UTC

Karen Friar

Big Tech's earnings will focus on AI and iPhones

Big Tech's earnings season gets going in earnest on Wednesday and Thursday. It all adds up to one of the biggest tests of the year for the tech industry, among the most important weeks for tech investors and analysts alike.

Yahoo Finance's Daniel Howley lays out what to watch, and what to expect:

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Read more here. Today at 11:17 AM UTC

Brian Sozzi

Under-the-radar AI plays

I have been thinking all morning long about under-the-radar plays on the hot AI trade. That doesn't appear to be slowing down, as we are being reminded by Nvidia (NVDA) being on the cusp of a $5 trillion market cap.

I am asking all CEOs — regardless of the industry — how they are partaking in the AI boom. I just got off the phone with the CEO of elevator giant Otis (OTIS), Judy Marks, and she said this that I hadn't thought of:

"The only way to move servers between two or three storeys is with a heavy-duty elevator. So it's a heavy-duty elevator. They obviously can take passengers, but it's really used to move racks and servers."

Good point! Today at 11:17 AM UTC

Karen Friar

Nvidia stock gains as Trump fuels hopes of China Blackwell sales

Shares in Nvidia climbed almost 4% in premarket, poised to build on Tuesday's record close and make the AI chipmaker the first company to top $5 trillion in market value.

Bloomberg reports:

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Read more here.

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