Fed Shrugs Off Data Gaps, Keeps QE in Focus 15/10/2025

HOT stories for today

Market wrap:

• U.S. equities endured a turbulent session on Tuesday as late-day trade headlines erased an early rebound, leaving two of the three major indexes lower. The S&P 500 ended down 0.2%, reversing gains of up to 0.4%, after President Donald Trump threatened a cooking oil embargo on China in retaliation for Beijing’s continued pullback on U.S. soybean purchases. The benchmark earlier fell as much as 1.5% amid choppy trading. The Nasdaq Composite dropped 0.8%, after tumbling as much as 2.1%, while the Dow Jones Industrial Average managed a 0.4% advance, or 203 points, recovering from a morning slide of 1.3%.
• Nvidia Corp. slipped, extending recent losses in the sector. However, Advanced Micro Devices Inc. gained after reports that Oracle Corp. plans to buy roughly 50,000 top-tier chips from the company next year. With third-quarter earnings season underway, early market reactions suggest investors remain focused on AI exposure and trade clarity, rather than record topline numbers.
• The Cboe Volatility Index jumped to its highest since May, signaling growing unease across markets. In the financial sector, JPMorgan Chase & Co. Chief Executive Jamie Dimon cautioned that “when you see one cockroach, there are probably more,” following losses tied to Tricolor loans. Dimon has reportedly stepped up internal reviews of potential credit weaknesses, even as he continues to press for faster regulatory rollbacks.

Powell signals QT nearing the end.

• Federal Reserve Chair Jerome Powell stated that the central bank is nearing the end of its balance sheet runoff, indicating that the era of quantitative tightening may soon come to a close. Speaking in Philadelphia, Powell said the Fed may “approach that point in coming months” as bank reserves reach levels consistent with “ample” liquidity.
• While Powell gave no firm guidance on rates, he acknowledged a softer labor market, keeping the door open to further cuts. The S&P 500 fell 0.2% and the Nasdaq dropped 0.8%, while the Dow eked out a 0.4% gain amid renewed U.S.–China trade tensions after President Donald Trump threatened an oil embargo.
• In Asia, regional markets advanced, breaking ranks with Wall Street’s declines as investors brushed off trade jitters. No primary U.S. economic data is scheduled for release on Wednesday. Still, attention turns to earnings from major banks, including Bank of America, Morgan Stanley, PNC Financial, Abbott Laboratories, and ASML, all set to report before the bell.

Stocks on the move:

• Nova Minerals (ASX: NVA): Shares surged 83%, marking their strongest session on record, after the company said the Australian ambassador to the U.S. had reached out regarding its Estelle Gold and Critical Minerals Project in Alaska.
• Albertsons (NYSE: ACI): The grocery chain jumped over 11% after fiscal Q2 earnings and revenue topped FactSet estimates. The board also approved a $750 million accelerated share repurchase program.
• Wells Fargo (NYSE: WFC): The bank’s third-quarter results beat forecasts, lifting shares 6.8%. Profit came in at $1.66 per share on $21.44 billion in revenue, compared with consensus estimates of $1.55 a share on $21.15 billion, according to LSEG. Wells also raised its profitability target.

Watchlist: AMD, ASML, BAC, MS, PLD, PNC, ABT, UAL, NVDA

Key Economic Events Today:

EST time

08:30 am: USD Empire State Manufacturing Index
09:30 am: USD FOMC Member Miran Speaks
02:00 pm: USD Beige Book


Earnings

BMO (Before Market Open): Bank of America ($BAC), ASML Holding ($ASML), Abbott Laboratories ($ABT), Morgan Stanley ($MS), Synchrony Financial ($SYF), PNC Financial ($PNC), and Prologis ($PLD). 
AMC (After Market Close): United Airlines Holdings ($UAL).
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The TEFS Analyst team wishes you a successful day!