Wall Street Rallied on Bank Earnings and Chipmaker Surge
The bullish tone extended worldwide. In Europe, the Euro Stoxx gained 0.89% to reach a record high. The German DAX slipped 0.11%.

Quick overview
- Expectations for Federal Reserve rate cuts increased, boosting Wall Street sentiment.
- Trade tensions eased as President Trump is set to meet with China's President Xi Jinping.
- The S&P 500 rose 0.50%, while Morgan Stanley shares hit an all-time high after strong earnings.
- Oil prices fell due to concerns over a global supply glut and ongoing trade issues.
Expectations of further Federal Reserve rate cuts returned to the spotlight on Wednesday, boosting sentiment on Wall Street.
Adding to the optimism, trade tensions eased after the U.S. government confirmed that Donald Trump will hold a bilateral meeting with China’s President Xi Jinping.
In this environment, the S&P 500—home to the most valuable companies in New York—rose 0.50%, while the tech-heavy Nasdaq Composite gained 0.72%. The Dow Jones Industrial Average edged up 0.11%.
Market Drivers
In the morning, U.S. Treasury Secretary Scott Bessent told reporters they are “working on a meeting” with China. “President Trump will meet with Xi,” he added.
On the monetary policy front, Boston Fed President Susan Collins said the central bank will “need to cut rates” to counteract weakening U.S. labor market conditions. Additional comments are expected from Atlanta Fed President Raphael Bostic and Fed Governor Christopher Waller. The release of the Beige Book—a report on current economic conditions across the Fed’s 12 districts—will also shape expectations.
Corporate Highlights
Morgan Stanley shares hit an all-time high, jumping 5.8%, while Bank of America climbed 3.9% after major lenders beat Wall Street earnings estimates for the third quarter.
Meanwhile, ASML reported third-quarter orders and operating income above market expectations, driven by booming AI-related investment. Its U.S.-listed shares advanced 1.6%.
Global Markets
The bullish tone extended worldwide. In Europe, the Euro Stoxx gained 0.89% to reach a record high. The German DAX slipped 0.11%, while France’s CAC 40 surged 1.99%. Outside the eurozone, the UK’s FTSE 100 fell 0.30%.
In Asia, Hong Kong’s Hang Seng rose 1.84%, Japan’s Nikkei 225 added 1.76%, and Shanghai’s benchmark gained 1.22%.
Oil Prices Slip
Oil prices fell on Wednesday, weighed down by fears of a global supply glut and lingering trade tensions between Washington and Beijing. Brent crude for December delivery dropped 0.77% to $61.91 per barrel, while U.S. West Texas Intermediate (WTI) for November delivery declined 0.73% to $58.27.
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