Stocks Close Mostly Lower as China Trade Tensions Outweigh Solid Bank Earnings

Noteworthy S&P 500 Movers on Tuesday

12 hr 46 min ago

Decliners

• AI darling Nvidia (NVDA) and other semiconductor stocks were among the S&P 500’s biggest decliners amid worries about shifting U.S.-China trade policies. Nvidia shares dropped over 4%, along with shares of Intel (INTC), which received a downgrade from Bank of America analysts suggesting the stock has climbed “too far, too fast” on enthusiasm for its recent AI deals.
• Arista Networks (ANET) shares dropped nearly 6%, falling the furthest of any S&P 500 stock after Nvidia announced that a pair of major AI players would be adopting its switches in their data centers, representing a competitive threat to Arista’s switches.
• A judge in Texas ruled in favor of the federal government in a lawsuit from health insurer Humana (HUM) challenging downgrades to its Medicare Advantage star ratings. The court determined that the Centers for Medicare & Medicaid Services acted legally in lowering Humana’s ratings, which affect the reimbursements received by insurers. Humana shares lost 3.5%.

Advancers

• Wells Fargo (WFC) shares surged over 7% to notch the S&P 500’s top performance of the day, after the financial firm beat third-quarter profit forecasts and boosted its profitability outlook. In June, the Federal Reserve lifted asset restrictions on the banking giant that it imposed in 2018 following a series of scandals. CEO Charlie Scharf emphasized that the removal of regulatory constraints positions the bank for stronger growth.
• Addressing the National Association for Business Economics conference in Philadelphia Tuesday afternoon, Federal Reserve Chair Jerome Powell suggested the central bank could be positioned for two more interest-rate cuts this year. Optimism around rate reductions helped boost companies exposed to the housing market, which stand to benefit as mortgage rates ease. Shares of residential construction supplier Builders FirstSource (BLDR) jumped 6.1%.
• Walmart (WMT) stock surged about 5% after the retail giant announced a partnership with ChatGPT developer OpenAI. According to Walmart, the new collaboration will allow shoppers to discover and buy items via instant checkout directly through the AI platform. The retailer also plans to enable conversational interactions with ChatGPT in the search bar on its websites.

–Michael Bromberg

Intel Slides Amid Worries Its Climbed ‘Too Far, Too Fast’

12 hr 52 min ago

Is Intel’s stock due for a pullback?

Bank of America analysts think so, telling clients this week they believe the struggling chipmaker’s stock has climbed “too far, too fast” after their recent rally on a string of high-profile deals.

The stock dropped over 4% Tuesday, making it one of the biggest decliners in the S&P 500 and Nasdaq, on a down day for the broader tech sector amid worries about U.S.-China trade tensions. Still, the stock is up nearly 80% for 2025, with most of the gains coming in just the last few months.

Sentiment for Intel’s (INTC) stock has gotten a boost lately after the Trump administration took a stake in August, and the chipmaker announced a partnership with rival Nvidia (NVDA) last month. That gave rise to speculation deals with others could come soon, with Apple (AAPL) and Advanced Micro Devices (AMD) floated as likely names.

However, Bank of America analysts said they believe Intel’s recent stock gains have become detached from its fundamental potential, with an outlook that “remains challenged with no discernible AI portfolio/strategy.”

The analysts downgraded the stock to “underperform” from “neutral,” with a price target of $34, suggesting about a 5% decline from Tuesday’s close.

That’s a bit above the average of analysts polled by Visible Alpha, who have largely maintained neutral ratings on the stock while waiting to see more signs of customer commitments to Intel’s manufacturing business.

–Kara Greenberg

Why Gold and Silver Keep Hitting Record Highs

13 hr 5 min ago

The global rally in precious metals continued Tuesday, reflecting a litany of concerns on the part of investors.

In spot markets, gold reached an all-time high of $4,186 per troy ounce, while silver hit a new record high of $53.59 per ounce. The precious metals came off those highs later in the session, but gold and silver remain 12% and 21% higher, respectively, in just the past month.

Tuesday’s trading followed a Monday session in which nominal silver futures contracts eclipsed an all-time high established in 1980, when the Hunt brothers tried to corner the global silver market. Silver now has surged 78% year-to-date, while gold is up 58%.

Long viewed as an investment hedge against economic turbulence, precious metals have surged in a global environment beset by myriad uncertainties.

Rising trade-related tensions between the U.S. and China have been at the top of the list recently. Meanwhile, the U.S. government shutdown is about to enter its third week. Furloughs and layoffs of some government employees have begun, threatening overall consumer spending and economic growth. Stock market volatility also appears to have aided precious metals.

Read the full article here.

–Lyle Niedens

China Trade Fight Threatens COVID-Like Shock to US Economy, Analysis Finds

14 hr 44 min ago

If the latest skirmish of words between President Donald Trump and Chinese leader Xi Jinping devolves into a full-scale trade war, the U.S. could take an economic hit on par with the onset of COVID-19. 

That’s according to an analysis Tuesday by Oxford Economics, which underlined the extremely high stakes of the ongoing trade dispute between the U.S. and China. Late last week, Chinese officials said they were imposing new restrictions on exports of rare earth minerals crucial for the high-tech industry. Trump retaliated Friday by threatening to impose “massive” tariffs on China, but softened that threat over the weekend, saying “it will all be fine.”

The threats of tariffs and rare earth restrictions were both set to take effect in November and may ultimately prove to be nothing more than bargaining ploys. Each side is trying to gain an advantage ahead of an expected meeting between Trump and Xi later this month in South Korea, several experts said.

Read the full article here.

–Diccon Hyatt

The Simple Trick Americans Are Using to Manage Grocery Bills: Sticking to Their Lists

14 hr 50 min ago

Americans aren’t done hunting for deals in grocery aisles.

Shoppers are looking to “focus on value,” the CEO of grocery chain Albertsons (ACI) said on a Tuesday conference call, adopting a range of strategies to save ranging from buying smaller to avoiding impulse purchases. The latest comments, from CEO Susan Morris, highlight a desire from consumers to make the most of their dollars as they navigate an uncertain economic environment.

Morris on Tuesday’s call highlighted a shift toward buying smaller package sizes and using more coupons. (The latter observation echoes one made recently by Kroger (KR), which once hoped to merge with Albertsons and has said a return to offering paper coupons has proven popular with some shoppers.) She also noted an enthusiasm for store brands, which other retailers have reported, saying they represent an “incredible upside opportunity.”

And she said shoppers are sticking to their plans when they hit the store, “maybe not buying that extra item, that extra bottle.”

Read the full article here.

–David Marino-Nachison

AMD Just Scored Another Big AI Chip Deal—What You Need to Know

15 hr 46 min ago

Advanced Micro Devices just racked up another major AI deal, with signs of more to come.

Cloud computing giant Oracle (ORCL) said Tuesday that it agreed to buy 50,000 GPUs from AMD (AMD) to build out its capacity to help customers scale their use of AI.

Oracle said its initial deployment of those chips would start in the third quarter of next year, with that number likely to expand in 2027 and beyond. The company said that as demand for AI grows, “customers need flexible, open compute solutions engineered for extreme scale and efficiency.”

Shares of AMD were up about 3% in recent trading, not far from their record highs set earlier this month. They’ve added 85% of their value this year, with more than half of those gains coming in the wake of the massive partnership with ChatGPT maker OpenAI unveiled on Oct. 6.

Oracle shares were 2% lower Tuesday, but have climbed roughly 80% in 2025 so far on its rosy outlook for AI-driven growth.

–Bill McColl

Fed Chair Powell Keeps Door Open for Interest Rate Cuts

15 hr 57 min ago

Financial markets widely expect the Federal Reserve to cut borrowing costs again later this month, and the central bank’s chair kept those expectations alive in remarks on Tuesday.

Despite the government shutdown depriving the central bank of its most crucial economic data, Fed Chair Jerome Powell said the inflation and unemployment situation seemed similar to that in September, when the Fed cut its benchmark interest rate and appeared to be on track to cut it several more times this year. Powell spoke at the National Association for Business Economics conference in Philadelphia.

“Based on the data that we do have, it is fair to say that the outlook for employment and inflation does not appear to have changed much since our September meeting four weeks ago,” Powell said.

Powell’s remarks shed some light on how Fed officials are dealing with the data “blackout” caused by the government shutdown that began Oct. 1.

The shutdown has closed the government’s statistical agencies that produce the data the Fed relies on to make decisions when setting the federal funds rate, which influences borrowing costs on all kinds of loans. For example, the Fed may not see the Bureau of Labor Statistics’ job creation report for September, which was due Oct. 3.

A notable exception to the data blackout is the September Consumer Price Index report, which is set to be published Oct. 24.

Read the full article here.

–Diccon Hyatt

Stuffed-Crust Pizza Demand Is Boosting Domino’s Sales, and Its Stock

16 hr 21 min ago

There’s a cheesy reason for Domino’s Pizza’s better-than-expected earnings.

The pizza delivery giant said the popularity of its stuffed-crust pizza and promotions helped drive its strong quarterly results.

Domino’s (DPZ) reported earnings per share of $4.08 for the third quarter on revenue that rose 6.2% year-over-year to $1.15 billion. Both figures were ahead of analysts’ estimates compiled by Visible Alpha, with CEO Russell Weiner attributing growth in both the company’s delivery and carryout businesses in part to its “stuffed crust pizza product innovation.”

Shares of Domino’s climbed close to 4% in recent trading following the news, which also comes about a week after Domino’s announced a brand refresh to target younger audiences, featuring changes in its look and a jingle by Grammy-nominated singer Shaboozey.

With Tuesday’s gains, shares of Domino’s are back in positive territory for the year.

–Bill McColl

Here’s What Investors Need to Know About This Weekend’s Massive Crypto Rout

17 hours ago

U.S.-China trade tensions triggered a sell-off in bitcoin and altcoins on Friday. Now the industry is calling it the largest single-day purge in crypto history.

More than $19 billion in leveraged crypto bets were liquidated over a 24-hour period that ended Saturday evening, affecting some 1.6 million traders, according to research platform Coinglass, which called its estimate conservative and the real total “likely much higher.”

Bitcoin, which had been grinding higher on the so-called debasement trade, diverged from gold as Beijing placed new restrictions on rare-earth minerals exports and subsequently pushed President Donald Trump to threaten a 100% tariff on China. As the market digested the renewed trade spat, bitcoin stopped holding hands with gold and followed risk assets, like stocks, lower, pulling back from a recent record.

“The concerns over an increase in tariffs were undeniably the catalyst,” Sean Farrell, Fundstrat’s head of digital assets, said of the sell-off in a Monday report.

The crypto market’s operational quirks fanned the flames. When traders rushed the exits at a time when there was less liquidity, the added selling pressure ripped through coin prices. (Though crypto markets do not close, trading volumes tend to wax and wane alongside U.S. stock market hours.). Bitcoin (BTCUSD) fell below $110,000, while altcoins including ethereum (ETHUSD) and solana (SOLUSD) notched double-digit declines. Some lesser-known coins lost four-fifths of their value.

Read the full article here.

–Crystal Kim

Information Technology Is Sole S&P 500 Sector in Red

17 hr 10 min ago

And then there was one.

Little by little Tuesday, several sectors tracked by the S&P 500 turned positive on the day. Now there is just one in the red: Information Technology.

The S&P 500 Information Technology Sector was the only one of the 11 tracked that was in negative territory on the day, down about 0.9%.

Arista Networks (ANET) was the worst-performing individual stock in the benchmark index, down about 4.5%. CrowdStrike Holdings (CRWD) and Nvidia (NVDA) also were struggling, down a respective 3.3% and 3.2%.

Small Business Owners Are Increasingly Worried About Economic Conditions

17 hr 22 min ago

Small business owner optimism in September sank to its lowest level in three months as concerns mount about the direction of the U.S. economy.

The Small Business Optimism Index declined to 98.8, its lowest level since June, as owners expressed fears about future sales levels, inflation, supply chain disruptions and inventory levels, according to the monthly survey by the National Federation of Independent Business.

Business owners were concerned enough about the economy to push the survey’s uncertainty index up seven points to hit 100, the fourth highest reading ever in the survey’s 51-year history.

Business owners are hoping for clarity on tariffs and other economic policies from the Trump administration. The September survey revealed that only 23% of business owners anticipate improved business conditions in the future, a 11 percentage point decline from August. 

“While most owners evaluate their own business as currently healthy, they are having to manage rising inflationary pressures, slower sales expectations, and ongoing labor market challenges,” NFIB Chief Economist Bill Dunkelberg wrote in the report. “Although uncertainty is high, small business owners remain resilient as they seek to better understand how policy changes will impact their operations.”

Read the full article here.

–Terry Lane

GM Is Taking a Big Hit as EV Demand Drops

17 hr 54 min ago

General Motors’ electric vehicle plans aren’t playing out as it had hoped.

The “Big Three” automaker warned Tuesday that it now expects to take a $1.6 billion charge in the third quarter as the company shakes up operations because of falling demand for EVs.

GM (GM) wrote in a regulatory filing that the charge is based on a “strategic realignment of our EV capacity and manufacturing footprint to consumer demand,” along with the cancellation of contracts and other EV investments.

The company also warned it could have “additional future material cash and non-cash charges that may adversely affect our results of operations and cash flows in the period in which they are recognized.” The carmaker is scheduled to report earnings next week.

Read the full article here.

–Bill McColl

The Stock Market’s Fear Index Is at Its Highest Level in Months—Here’s Why

18 hr 11 min ago

Investors are getting a taste of volatility.

We’re not back where we were in April—but the increase is notable, with the major U.S. stock indexes moving dramatically Friday and Monday in response to fresh uncertainty regarding the trade relationship with China. (That’s continued today, with the S&P 500 falling as much as 1.5% in early trading before rebounding. Read Investopedia’s full daily markets coverage here.)

A widely used measure of market volatility is the VIX, sometimes called the market’s “fear index,” which uses options data to get at traders’ estimation of expected volatility in the benchmark S&P 500 over the coming 30 days. Broadly speaking, a reading under 20 is generally taken as a sense of calm; the higher the number, the more fear there is out there.

The VIX rose to near 23 this morning, its highest level since late May. That’s notably above levels seen in recent weeks, but well off those above 50 seen in early April, at the height of trade-related uncertainty, which were themselves the highest in more than a decade.

“There continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation,” JPMorgan Chase CEO Jamie Dimon said in a statement Tuesday.

Stocks aren’t that far off recent record highs, showing that investors haven’t jumped ship even as debates about whether we’re in a bubble—and, if so, what to do about it and when—continue daily. Still, there are other measures of concern out there. CNN’s Fear & Greed Index, which works together several different data points, is on the brink of shifting into “Extreme Fear” territory; it suggested greed earlier this month.

Read the full article here.

–David Marino-Nachison

JPMorgan CEO Jamie Dimon Says There’s a ‘Heightened Degree of Uncertainty’

18 hr 25 min ago

The U.S. economy is facing “a heightened degree of uncertainty,” JPMorgan CEO Jamie Dimon said Tuesday.

The economy has been fairly “resilient,” despite some indications of softening, such as limited job growth, Dimon said. The path forward, he said, is less certain, given several “complex factors.”

“There continues to be a heightened degree of uncertainty stemming from complex geopolitical conditions, tariffs and trade uncertainty, elevated asset prices and the risk of sticky inflation,” Dimon said in a statement.

JPMorgan Chase (JPM) was one of the first major banks to analyze the economy after a tariff announcement sent shockwaves through the stock market last week. Wells Fargo (WFC) CEO Charlie Scharf also characterized the economy as resilient, saying “the financial health of our clients and customers remains strong.”

Read the full article here.

–Sarina Trangle

Walmart, OpenAI Announce Partnership on ‘AI-First Shopping Experiences’

19 hr 7 min ago

Walmart (WMT) shares were up 3% in recent trading to help the Dow Jones Industrial Averages turn slightly higher on the day.

The stock was lifted by news that the world’s biggest retailer was partnering with ChatGPT parent OpenAI on “AI-first shopping experiences.”

The partnership “will start with allowing customers and members to soon shop Walmart through ChatGPT using Instant Checkout,” the press release said.

Walmart shares are up about 16% year-to-date, outpacing the blue-chip Dow’s 9% advance.

Broadcom Stock Retreats After Soaring on OpenAI Deal—Monitor These Key Price Levels

19 hr 45 min ago

Broadcom (AVGO) shares dropped Tuesday morning, giving back a portion of the big gains posted yesterday following news that the chip giant had forged a deal with ChatGPT maker OpenAI.

The company said it would collaborate with OpenAI on the development of artificial intelligence accelerator and network systems for delivery from 2026 to 2029. The announcement comes just a week after rival Advanced Micro Devices (AMD) inked a deal with the San Francisco-based AI start-up.

Broadcom shares were down nearly 4% at around $343 in recent trading, tracking a broader move lower for U.S. equities, after surging 10% on Monday. Investors have bid up the stock, which has risen about 50% since the start of the year, amid surging demand for custom AI chips as enterprises build out their AI capacity.

After hitting their all-time high last month, Broadcom shares retraced toward the 50-day moving average (MA) before attracting buying interest near the respected indicator.

Buying in the stock accelerated yesterday on the highest trading volume in over a month, a move that also coincided with the relative strength index (RSI) reclaiming the 50 threshold to signal a return of bullish price momentum.

Read the full technical analysis piece here.

–Timothy Smith

MGM Resorts International Stock Gains on Raised BetMGM Outlook

20 hr 34 min ago

One of the best-performing stocks in the S&P 500 on a down Tuesday morning for the benchmark index was MGM Resorts International (MGM).

Shares of the casino operator were up nearly 3% after its BetMGM unit, jointly owned with London-listed sports betting and gambling operator Entain, said it was lifting its fiscal 2025 guidance for net revenue of at least $2.75 billion and EBITDA of approximately $200 million.

BetMGM also expects to distribute at least $200 million to its parents before the end of 2025, it said.

MGM Resorts International shares remain slightly lower year-to-date. Entain shares are up 1% in London today and are about 20% higher in 2025.

Albertsons Cos. Stock Soars on Strong Results, Lifted Outlook

20 hr 52 min ago

Shares of Albertsons Cos. (ACI) jumped 10% in early trading Tuesday after the supermarket chain reported better-than-expected fiscal 2025 second-quarter results and raised its outlook.

The Boise, Idaho-based company reported adjusted earnings per share of $0.44 on net sales that increased 2% year-over-year to $18.92 billion. Analysts surveyed by Visible Alpha had expected $0.40 and $18.88 billion, respectively.

Albertsons also lifted its full-year adjusted EPS projection to a range of $2.06 to $2.19 per share from the prior $2.03 to $2.16, and the bottom of its identical sales growth forecast range to 2.2% from 2.0%.

Even with today’s gains, Albertsons shares are down about 6% this year.

Ericsson Stock Pops as Firm Sees ‘Increased Shareholder Distributions’ Ahead

22 hr 23 min ago

U.S.-listed shares of Ericsson (ERIC) soared 15% before the bell Tuesday after the Swedish maker of telecommunications equipment reported third-quarter profit above expectations and said it anticipated “increased shareholder distributions” in Q4.

“Solid recurring cash flow and the Iconectiv sale contributed to a strong Q3 cash position, offering scope for increased shareholder distributions,” CEO Börje Ekholm said, referring to the 7.6 billion Swedish kroner ($800 million) benefit from the firm’s divestment of its connectivity services business. “The Board’s recommendation on the scale and mechanism for the distribution will be included in the Q4 report for decision at the AGM.”

Entering Tuesday, U.S.-listed shares of Ericsson were up just over 1% this year.

Stock Futures Point Lower as China Tensions Ramp Up Again

23 hr 9 min ago

Futures tied to the Dow Jones Industrial Average slipped 0.5%.

S&P 500 futures were down 0.9%.

Nasdaq 100 futures fell 1.2%.