Nasdaq, S&P 500 Close Higher After Another Volatile Session

(RTTNews) - Stocks showed wild swings over the course of the trading day on Wednesday, extending the substantial volatility seen during the previous session. The major averages spent the day bouncing back and forth across the unchanged line.

While the Nasdaq and the S&P 500 ended the day firmly in positive territory, the narrower Dow posted a slim loss. The Dow edged down 17.15 points or less than a tenth of a percent to 46,253.31, but the S&P 500 rose 26.75 points or 0.4 percent to 6,671.06 and the Nasdaq climbed 148.38 points or 0.7 percent to 22,679.08.

The continued volatility on Wall Street came as traders weighed upbeat earnings news against concerns about U.S.-China trade tensions and lingering worries about valuations.

Investment banking giant Morgan Stanley (MS) surged by 4.7 percent to a record closing high after reporting better than expected third quarter results.

Shares of Bank of America (BAS) also shot up by 4.4 percent after the company reported third quarter results that exceeded analyst estimates on both the top and bottom lines.

U.S.-listed shares of ASML (ASML) also saw significant strength after the Dutch semiconductor equipment maker reported mixed third quarter results but said it expects 2026 total net sales to exceed 2025.

Meanwhile, traders kept an eye on any comments from President Donald Trump about U.S. trade with China, which have been a key driver of market sentiment in recent sessions.

In U.S. economic news, the Federal Reserve Bank of New York released a report this morning showing New York manufacturing activity has seen a significant turnaround in the month of October.

The New York Fed said its general business conditions index surged to a positive 10.7 in October after plunging to a negative 8.7 in September, with a positive reading indicating growth. Economists had expected the index to climb to a negative 1.8.

Meanwhile, the Federal Reserve's Beige Book said economic activity in the U.S. has shown little change since early September.

The Beige Book, a compilation of anecdotal evidence on economic conditions in each of the twelve Fed districts, said three districts reported slight to modest growth in activity, five reported no change, and four noted a slight softening.

Sector News

Gold stocks moved sharply higher as the price of the precious metal continues to soar to record highs, driving the NYSE Arca Gold Bugs Index up by 4.1 percent to a record closing high.

Substantial strength was also visible among computer hardware and semiconductor stocks, with the NYSE Arca Computer Hardware Index and the Philadelphia Semiconductor Index surging by 4.0 percent and 3.0 percent, respectively.

Commercial real estate, oil service and biotechnology stocks also saw notable strength on the day, closing higher along with most of the other major sectors.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index surged by 1.8 percent, while China's Shanghai Composite Index jumped by 1.2 percent.

Meanwhile, the major European markets are turning in a mixed performance on the day. While the French CAC 40 Index surged by 2.0 percent, the German DAX Index dipped by 0.2 percent and the U.K.'s FTSE 100 Index fell by 0.3 percent.

In the bond market, treasuries moved lower over the course of the session after seeing early strength. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.4 basis points to 4.046 percent after hitting a low of 4.001 percent.

Looking Ahead

Several key U.S. economic reports had been scheduled to be released on Thursday, but the publication of the data has been indefinitely postponed due to the ongoing government shutdown. Traders are likely to keep an eye on the latest earnings news along with remarks by several Fed officials.