NEW YORK – The S&P 500 ended higher on Oct 15, with Morgan Stanley and Bank of America rallying after solid quarterly results, while investors remained focused on the recent increase in China-US trade tensions.
Morgan Stanley’s shares jumped 4.7 per cent to a record high, while Bank of America rose 4.4 per cent after the top lenders beat Wall Street estimates for third-quarter profit on dealmaking strength.
The S&P 500 banking index rose 1.2 per cent in its first three-day winning streak in more than three weeks. A day earlier, Goldman Sachs and JPMorgan Chase reported solid performance in investment banking and predicted that the business would continue to boom.
This week’s bank results indicate strength for major US companies as third-quarter earnings season kicks off, and they also provide hints of the economy’s health while many macroeconomic reports remain on hold due to a government shutdown.
“People are spending, and the consumer seems to be fine. That’s been one of the messages from the bank earnings,” said Thomas Martin, senior portfolio manager at Globalt in Atlanta. “Employment is not falling like a stone. Both inflation and employment are within ranges that are basically reasonable.”
The Philadelphia Semiconductor Index jumped 3 per cent after ASML reported third-quarter orders and operating income above market expectations, lifted by booming AI investment.
ASML’s US stock rallied 2.7 per cent. An investment consortium including BlackRock, Microsoft and Nvidia will buy one of the world’s biggest data center operators in a US$40 billion (S$52 billion) deal. Shares of data centre firms rose, with Applied Digital surging.
The S&P 500 climbed 0.40 per cent to end the session at 6,671.06 points.
The Nasdaq gained 0.66 per cent to 22,670.08 points, while the Dow Jones Industrial Average declined 0.04 per cent to 46,253.31 points.
Seven of the 11 S&P 500 sector indexes rose, led by real estate, up 1.5 per cent, followed by a 1.29 per cent gain in utilities.
Volume on US exchanges was relatively heavy, with 21.5 billion shares traded, compared with an average of 20.4 billion shares over the previous 20 sessions.
US Treasury Secretary Scott Bessent told CNBC that Washington did not want to escalate a trade conflict with China, emphasising that President Donald Trump is
ready to meet Chinese President Xi Jinping
in South Korea later in October.
On Oct 14, Mr Trump said Washington was considering cutting some trade ties with China, including in relation to cooking oil. The two countries this week began imposing tit-for-tat port fees.
Mr Bessent also said he plans to present three or four Federal Reserve chief candidates to Mr Trump for him to interview sometime after the US Thanksgiving holiday.
Fed Governor Stephen Miran at a CNBC event said “two more cuts this year sounds realistic,” noting that the labor market has clearly weakened.
Fed Chair Jerome Powell on Oct 14 also left the door open to rate cuts. The Fed said in its latest Beige Book report compiled through October 6 that some employers reported cutting jobs due to economic uncertainty, and in some cases, due to increased investment in AI.
The report also showed the labour supply in hospitality, agriculture, construction and manufacturing was strained due to the Trump administration’s
crackdown on illegal immigration
.
Abbott declined 2.4 per cent following downbeat quarterly revenue from the medical equipment maker.
Progressive Corp fell 5.8 per cent after the insurer reported third-quarter results. Bunge jumped almost 13 per cent, despite the grain trader lowering its 2025 earnings forecast following its merger with Viterra.
The number of declining stocks matched rising ones within the S&P 500.
The S&P 500 posted 34 new highs and 5 new lows; the Nasdaq recorded 154 new highs and 46 new lows. REUTERS