Wall Street rises as focus turns to earnings and the Fed
October 28, 2025
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October 29, 2025October 28, 20254:01 PM EDTUpdated 51 mins ago
Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 27, 2025. REUTERS/Brendan McDermid Purchase Licensing Rights, opens new tab
- Summary
- Companies
- Microsoft advances after OpenAI restructuring deal
- Key results from megacap names due this week
- Nvidia will build AI supercomputers for US energy department
Oct 28 (Reuters) – All three major U.S. stock indexes posted record closing highs again on Tuesday as Nvidia shares gained following news it will build artificial intelligence supercomputers for the U.S. energy department, and as investors were optimistic about corporate earnings ahead of key results from megacaps this week.
Nvidia’s (NVDA.O), opens new tab CEO, Jensen Huang, said the company will build seven supercomputers for the U.S. Department of Energy, and said the company has $500 billion in bookings for its AI chips. Nvidia also announced new details with Finnish telecom equipment maker Nokia (NOKIA.HE), opens new tab to target the AI communications market.
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Microsoft’s shares (MSFT.O), opens new tab also gained after the company reached a deal that allows OpenAI to restructure into a public benefit corporation while giving Microsoft a stake of 27% in the ChatGPT maker.
Key quarterly results are expected this week from Apple (AAPL.O), opens new tab, Microsoft, Alphabet (GOOGL.O), opens new tab, Amazon (AMZN.O), opens new tab, and Meta Platforms (META.O), opens new tab. Investors are anxious for details from the companies on AI spending.
“Momentum and earnings are pushing the market higher,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York, adding that there is also “enthusiasm about Trump’s Asian trip.” “Earnings have been good,” he said. “Of course, we’re waiting for the big tech stocks.”
Trump lavished praise on Japan’s first female leader, Sanae Takaichi, in Tokyo on Tuesday. They signed a deal to bolster supplies of critical minerals and rare earths, as their nations seek to reduce China’s dominance of some areas of key electronic components.
According to preliminary data, the S&P 500 (.SPX), opens new tab gained 15.79 points, or 0.24%, to end at 6,890.95 points, while the Nasdaq Composite (.IXIC), opens new tab gained 190.04 points, or 0.80%, to 23,827.49. The Dow Jones Industrial Average (.DJI), opens new tab rose 162.06 points, or 0.34%, to 47,706.65.
United Parcel Service (UPS.N), opens new tab shares rose after it forecast fourth-quarter revenue above expectations. Rival FedEx (FDX.N), opens new tab also gained.
QUARTERLY EARNINGS UP
Third-quarter earnings for S&P 500 companies are estimated to have increased 10.5% from the year-ago period, up from earlier estimates for the quarter, according to LSEG data.
The Federal Reserve is widely expected to announce this week a cut in interest rates. Investors will be keen to get any details on the rate outlook, especially given that the U.S. government has been shut down for nearly a month, delaying crucial economic data and forcing traders to rely on private releases and corporate announcements.
A preliminary estimate of an ADP National Employment Report, opens new tab showed the U.S. economy added an average of 14,250 jobs in the four weeks ending October 11.
Reporting by Caroline Valetkevitch; additional reporting by Johann M Cherian and Twesha Dikshit in Bengaluru; Editing by Pooja Desai and Rod Nickel
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