Wall Street Pushes Higher as Markets Await Fed Decision
U.S. equities climbed on Tuesday, extending Monday’s record-breaking rally as investors positioned ahead of the Federal Reserve’s policy meeting and digested a heavy week of corporate earnings.
The Dow Jones Industrial Average gained 0.5%, the S&P 500 inched 0.1% higher, and the Nasdaq Composite rose 0.3% — all hovering near new all-time highs.
The Fed began its two-day policy meeting Tuesday morning, with markets pricing in a second consecutive rate cut and looking for signals from Chair Jerome Powell about a potential December move. With most official data releases halted due to the government shutdown, investors are relying heavily on earnings and private data for direction.
Earnings and Market Drivers
Earnings season remains in full swing, with reports from Visa (V), UnitedHealth (UNH), UPS (UPS), and PayPal (PYPL) headlining Tuesday’s session.
Later this week, attention shifts to the “Magnificent Seven” megacaps:
- Alphabet (GOOG), Apple (AAPL), Meta (META), and Microsoft (MSFT) all report earnings.
- Amazon (AMZN) remains under pressure after announcing 14,000 job cuts.
- Apple crossed a $4 trillion market value milestone, setting the tone for its upcoming results.
Investors are also watching Nvidia’s (NVDA) CEO Jensen Huang’s address this afternoon for clues about AI chip exports to China — a critical front in the ongoing U.S.–China tech trade battle.
Trade Optimism and Global Moves
Geopolitical momentum added to market optimism as President Trump announced new rare earth and trade agreements with Japan on Tuesday.
The series of deals — which include partnerships in critical minerals and semiconductor supply — come ahead of Trump’s scheduled meeting with Chinese President Xi Jinping on Thursday, raising hopes for progress on broader trade relations.
The developments further boosted risk appetite, especially in sectors tied to industrials, energy, and technology.
Consumer Confidence Slips as Inflation and Jobs Worries Mount
While markets cheer trade and earnings news, the mood among consumers is cooling.
The Conference Board’s Consumer Confidence Index fell for a third consecutive month in October, slipping 1 point to 94.6, its lowest since April. The decline came as households grew more cautious about income, employment, and business conditions — signaling that inflation concerns and labor softness continue to weigh on sentiment.
“Consumers were a bit more pessimistic about future job availability and income,” said Stephanie Guichard, senior economist at the Conference Board. The Expectations Index dropped 2.9 points, staying below levels that typically signal recession risk.
Labor and Inflation Outlook
- Only 15.8% of respondents expect more jobs in the next six months, down from 16.6% in September.
- ADP private payroll data suggested a “tepid recovery” in hiring last month.
- Major companies like Amazon and UPS have recently announced layoffs, heightening labor market uncertainty.
- Inflation data from September showed a modest improvement, though October’s figures remain delayed due to the shutdown.
The combination of weaker confidence, job-market jitters, and limited data visibility places even greater focus on the Fed’s decision this week.
WSA Take
The market’s resilience reflects growing faith in a soft landing — but cracks are appearing beneath the surface.
Consumer sentiment is sliding, data flow is restricted, and trade policy remains volatile.
Still, investors seem determined to look past short-term noise, betting that lower rates and trade progress will extend the bull run into year-end.
This article builds on our recent coverage of Qualcomm’s AI chip expansion, where investor optimism has been similarly fueled by technology leadership and macro policy shifts.
Read our full coverage on Microsoft’s Stake in OpenAI.
Explore more market updates on the Wall Street Access homepage.
Disclaimer
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for informational and educational purposes only.
