FX.co ★ US Stocks Advance as Earnings Boost Sentiment

On Wednesday, U.S. stock markets experienced an uptick, with the S&P 500 increasing by 0.7%, the Nasdaq rising 0.9%, and the Dow Jones climbing approximately 220 points. This positive shift followed a turbulent trading session on Tuesday, as investors shifted their attention to a fresh round of corporate earnings reports. Notably, Bank of America surged by 4.5% on the back of higher-than-expected quarterly profits. Morgan Stanley saw its shares leap over 6% to a new record high of $164, driven by better-than-anticipated earnings and revenues. Nvidia also saw positive movement, gaining 1.6% after HSBC upgraded its stock rating to 'Buy' from 'Hold'. Conversely, Abbott Laboratories experienced a decline, with shares falling 2.2% following a revenue shortfall. Meanwhile, remarks from Federal Reserve Chair Jerome Powell on Tuesday buoyed expectations for a potential interest rate cut in October, alongside a possible suspension of the Fed’s balance sheet reduction. Additionally, the ongoing federal government shutdown is delaying key economic reports, while U.S.-China trade tensions persist, highlighted by President Trump's recent threat to impose a cooking oil embargo on Beijing.