Stock indexes closed mixed on Wednesday, with the S&P 500 and Nasdaq up, while the Dow Jones closed down. Positive quarterly earnings results boosted market sentiment, especially in chipmakers like ASML Holding. Trade tensions with China eased slightly, and Treasury Secretary Mnuchin hinted at a longer tariff truce. The Fed’s Beige Book indicated rising input costs, leading to market caution. Precious metals surged as a safe haven amid trade tensions and the US government shutdown.

US economic activity remained steady, but consumer spending dipped slightly. Mortgage applications fell, while the 10-year T-note yield rose after dovish Fed comments. The ongoing government shutdown delayed key economic reports, heightening market concerns. The Q3 earnings season kicked off positively, with companies beating forecasts, but overall profit growth is expected to slow.

Markets anticipate a rate cut at the next FOMC meeting, with global stock markets closing higher. European government bond yields fell, and Eurozone industrial production declined. ECB members expressed concerns over inflation and economic activity. Swaps indicate a low chance of an ECB rate cut later this month.

Stock movers included chipmakers like ASML Holding and AMD, gold mining stocks, and Bunge Global SA post-earnings. Morgan Stanley and Bank of America reported strong Q3 results, while other companies like Sable Offshore and Hancock Whitney faced declines. Earnings reports for 10/16 include companies like Bank of New York Mellon and US Bancorp.

Overall, market sentiment remains cautious amid trade uncertainties, the government shutdown, and earnings season projections. Investors are closely monitoring economic indicators and corporate results for further market direction.

Read more at Nasdaq: Stocks Boosted by Strength in Chipmakers and Earnings Optimism