U.S. Market Update: Futures Rise on Fed Easing Hopes, Strong Earnings, and Safe-Haven Flows

Index Update:  U.S. futures gained on Wednesday after a volatile Tuesday session driven by corporate updates and Fed remarks. Bank of America rose 3.6% on strong earnings, while Morgan Stanley and Abbott Laboratories also traded higher ahead of their reports. Fed Chair Jerome Powell’s comments bolstered expectations of an October rate cut and a possible pause in balance sheet reduction. Meanwhile, the ongoing U.S. government shutdown is delaying key economic data, and renewed U.S.-China trade tensions—highlighted by Trump’s threat of a cooking oil embargo—remain in focus.

Market Movers:  On Tuesday, the top gainers were Aqua Metals, Inc. (+198.89%), followed by Greenwave Technology Solutions, Inc. (+106.23%). On the contrary Namib Minerals (-23.74%), and Safe & Green Holdings Corp. (-23.35%) declined the most the same day.

Commodities Update:  Crude oil prices extended losses on Wednesday, with WTI nearing USD 58 and Brent around USD 62 per barrel — their lowest levels since May — amid fears of a global supply glut and escalating US-China trade tensions. The International Energy Agency warned of a potential oversupply next year, projecting output to exceed demand by nearly 4 million barrels per day due to rising production and weak consumption. Meanwhile, gold surged above USD 4,200 per ounce to a new record high, driven by safe-haven demand and growing expectations of further U.S. rate cuts following dovish remarks from Fed Chair Jerome Powell. Heightened U.S.-China trade frictions and the ongoing U.S. government shutdown further added to market uncertainty.

Macro Updates:  U.S. mortgage applications declined 1.8% in the week ending October 10, 2025, marking the third straight weekly drop. Purchase applications fell 2.7%, while refinancing slipped 1%. The average 30-year fixed mortgage rate edged down slightly by 1 basis point to 6.42%.

Bonds Commentary:  The U.S. 10-year Treasury yield fell toward 4% on Wednesday, its lowest level since April, as Fed Chair Powell’s comments on labor market weakness boosted expectations for further rate cuts. The ongoing government shutdown and renewed U.S.-China tensions also drove safe-haven demand. Markets now fully anticipate a rate cut this month, another in December, and additional easing next year, with geopolitical risks further pressuring yields.

Futures Update:  U.S. stock index futures rose on Wednesday as investors reacted positively to Fed Chair Jerome Powell’s dovish comments and awaited upcoming corporate earnings. At 06:15 ET, Dow, S&P 500, and Nasdaq futures were up 0.5%, 0.6%, and 0.9%, respectively. Tuesday’s mixed Wall Street session saw a rebound driven by optimism over strong bank earnings and solid results across sectors. Powell’s remarks strengthened expectations of further Fed rate cuts in the final two meetings of 2025, following September’s 25-basis-point reduction.

Following the notable rebound observed in the previous session, stocks experienced significant volatility throughout Tuesday’s trading day. The S&P 500 declined by 10.41 points, or 0.16%, closing at 6,644.30. From a technical perspective, there is potential for further upward movement in the coming days of the week. Additionally, the 14-day Relative Strength Index (RSI) is near the mid-point and could increase further, indicating possible selling pressure. Support levels are around 6,500, while resistance is anticipated near 6,700.