Stock Market Today: Powell’s Comments Lift Dow, China Tariff Clash Drags Nasdaq

​U.S. stocks were mixed on Tuesday as investors weighed new trade escalations between the U.S. and China alongside comments from Federal Reserve Chair Jerome Powell that signaled additional rate cuts could be on the table.

The Dow Jones Industrial Average rose 0.8%, or about 380 points, to 46,450. The S&P 500 gained 0.2%, while the Nasdaq Composite slipped 0.3%, as tech stocks faced renewed pressure. The turbulent performance follows Monday’s strong rebound, with traders now focusing on the Fed’s tone and the early results of third-quarter earnings season.

Market Movers:

• Walmart (WMT) climbed more than 5% after announcing a partnership with OpenAI to bring ChatGPT-powered shopping features to its website and Sam’s Club. The retailer said customers will be able to use AI-driven conversational tools to browse and purchase products directly, marking a major step in its digital retail strategy.
• Advanced Micro Devices (AMD) rose over 3% as the chipmaker revealed plans to supply Oracle’s cloud business with 50,000 AI chips. The deal strengthens AMD’s position in the rapidly expanding AI hardware market and follows its recent multibillion-dollar agreement with OpenAI.
• Nvidia (NVDA) slipped 3.5%, extending its decline from Monday’s highs as investors rotated out of overbought tech names. The chipmaker’s shares have been volatile amid concerns about U.S.–China trade frictions and potential export restrictions.
• JPMorgan Chase (JPM) dipped 1% after CEO Jamie Dimon acknowledged losses tied to subprime auto lender Tricolor Holdings, calling it “not our finest moment.” The bank took a $170 million charge-off related to the collapse.
• Nova Minerals (NVA) surged more than 100% after the company said it was asked by the White House to prepare a briefing on its Alaska gold and critical minerals project ahead of a meeting between President Trump and Australia’s prime minister.

Powell Signals Possible Rate Cuts as Fed Flies Blind

In a speech at the National Association for Business Economics meeting, Fed Chair Jerome Powell said the outlook for employment and inflation has “not changed much” since September but warned that “downside risks to employment appear to have risen.” The comments fueled speculation that the Fed could implement another rate cut at its late-October meeting.

Powell stated that monetary policy remains data-dependent, but with the ongoing government shutdown delaying key releases on jobs and inflation, the Fed is effectively operating without up-to-date economic data. That uncertainty has left traders closely parsing every comment from central bank officials for hints about the path ahead.

U.S.–China Trade Tensions Resurface

Investor optimism from Monday’s rally faded early Tuesday after China introduced new retaliatory measures against the U.S. in its widening tariff dispute. Beijing imposed sanctions on five U.S.-linked subsidiaries of South Korea’s Hanwha Ocean and began charging new port fees on American vessels. The U.S. responded in kind, rekindling fears of a broader trade confrontation that could disrupt global supply chains.

The move comes days after President Trump temporarily softened his rhetoric toward Beijing, offering hope for de-escalation. Analysts now warn that trade relations could again become a dominant driver of market sentiment if tensions continue to mount heading into the year’s final quarter.

Earnings Season Off to a Mixed Start

The third-quarter earnings season kicked off with major Wall Street banks reporting results. Goldman Sachs and JPMorgan Chase both posted higher profits, aided by strong dealmaking activity, though their shares slipped as investors focused on credit risks and cautious guidance. Wells Fargo, meanwhile, gained after reporting stronger-than-expected revenue growth and expanding margins.

Earnings from the banking sector set the tone for a busy reporting week, with results from Citigroup, Bank of America, and Morgan Stanley due later this week. Analysts expect financials to post roughly 6% earnings growth year over year, according to Bloomberg estimates, though margins remain pressured by a slower lending environment.

Looking Ahead

Markets remain on edge as investors juggle Fed policy signals, renewed trade tensions, and the uncertain flow of economic data amid the ongoing shutdown. Powell’s comments have boosted rate-cut expectations, but without new inflation or employment figures, traders are left guessing at the economy’s true health. Attention now turns to upcoming corporate earnings and the Fed’s next meeting on October 28-29. Until then, volatility may remain elevated as investors gauge whether recent rallies can hold in the face of persistent geopolitical and macroeconomic uncertainty.