Stock Market Today: Stocks Retreat From Records With Fed Cuts, Earnings Season in Spotlight

​U.S. stocks fell on Thursday, shedding recent record-setting gains as investors weighed strong early earnings reports against uncertainty from the ongoing government shutdown. The Dow Jones Industrial Average fell 0.6%, while the S&P 500 lost 0.5% and the Nasdaq Composite dropped 0.5%.

The pullback followed a powerful rally fueled by AI optimism and hopes for lower interest rates, with gold’s surge above $4,000 pausing amid profit-taking. With key economic data delayed by the shutdown, markets are looking to corporate results and Federal Reserve signals for clarity on the path ahead.

Market Movers:

• PepsiCo (PEP) – Shares edged higher after the company beat Wall Street estimates on both earnings and revenue, offering a solid start to the third-quarter earnings season. The results eased concerns about consumer weakness, helping PEP steady despite broader market softness.
• Delta Air Lines (DAL) – The carrier’s stock jumped nearly 7% after reporting quarterly results that exceeded expectations, driven by stronger demand and restored confidence among travelers. The upbeat outlook lifted the broader airline sector, with United, American, and Alaska Airlines also rallying.
• Intel (INTC) – Intel reversed early losses and ended slightly higher after unveiling its next-generation Panther Lake PC chip and Clearwater Forest server processor. The company’s success with its new 18A manufacturing process is being closely watched as it tries to revive its foundry business.
• Nvidia (NVDA) – Shares touched a record intraday high after Cantor raised its price target to a Street best, citing expanding AI chip demand. Additional momentum came from US approval for Nvidia to export chips to the UAE, bolstering its global footprint.
• UiPath (PATH) – The automation software firm surged nearly 20% after announcing deeper integration with OpenAI and Nvidia, extending a sharp rally from earlier in the week. The partnership has reinforced investor enthusiasm around AI-driven enterprise adoption.

Earnings Season Kicks Off

PepsiCo’s better-than-expected results helped ease concerns, as they showed that consumer demand remains strong despite tariff and inflation headwinds. Investors will be watching closely as earnings season takes off next week, with major banks set to report. With shutdown-delayed economic data clouding the macro picture, earnings are expected to play a big role in shaping market sentiment in the weeks ahead.

Delta’s strong report further added to optimism, showing airlines may be navigating geopolitical and trade disruptions better than previously expected. If the trend holds across other consumer-facing industries, it could help validate bullish forecasts that have underpinned the market’s record climb.

Federal Reserve Signals

The release of the September Fed meeting minutes confirmed that most officials expect at least two more rate cuts this year, giving investors confidence that monetary policy will remain supportive. Still, comments from Fed Governor Michael Barr urging caution highlighted a divide within the central bank over how aggressively to ease. Chair Jerome Powell is scheduled to speak later today, and markets will wait for clarity on the Fed’s policy trajectory.

At the same time, mortgage rates edged lower this week, offering some relief to the housing market. But the lack of official labor and inflation data due to the shutdown is leaving policymakers and investors alike reliant on private surveys and alternative measures to gauge economic health.

Commodities and Geopolitics

Gold prices steadied below $4,000 after a historic rally, while silver surged above $50 an ounce for the first time in decades, underscoring continued demand for safe-haven assets. Oil, meanwhile, fell on news that Israel and Hamas agreed to the first phase of a US-backed peace plan, easing some geopolitical risk premiums that had supported crude earlier in the year.

Rare earth stocks also gained after China imposed new export restrictions, a move that could tighten global supply chains for critical minerals used in EVs, semiconductors, and defense applications. US-backed investments in domestic miners have further lifted sentiment in the space, signaling Washington’s intent to reduce reliance on Beijing.

Looking Ahead

With the government shutdown sidelining key economic data, Wall Street is increasingly dependent on earnings results and Fed guidance to gauge the economy’s trajectory. The upcoming wave of bank reports, Powell’s comments, and any movement in Washington negotiations over healthcare subsidies could set the tone for the next market leg. For now, investors appear to be catching their breath after a record-setting run, balancing optimism over AI and rate cuts with ongoing political and geopolitical uncertainty.