MARKETS USA/Upward in one-way street mode - Lots of movement in the chip sector

DJ MARKETS USA/Upward in one-way street mode - Lots of movement in the chip sector

By Steffen Gosenheimer

DOW JONES - Confidence among US stock market participants fueled further price increases and new record highs on Tuesday. Investors continued to bet that the US Federal Reserve will cut interest rates further on Wednesday and possibly beyond, and that the US and China will announce a trade agreement on Thursday. The US and Chinese presidents will meet in South Korea then. The meeting between US President Trump and the new Japanese Prime Minister Takaichi also provided optimism. Both have expressed their desire to usher in a new era of cooperation in the areas of security and trade.

The Dow Jones Industrial Average gained 0.3 percent to 47,706 points. The broader S&P 500 rose 0.2 percent, and the tech-heavy Nasdaq indexes gained as much as 0.8 percent. According to initial counts, there were 1,002 gainers (Monday: 1,550), 1,766 decliners (Monday: 1,211), and 62 unchanged (57) stocks on the NYSE.

The bond market remained relatively unchanged, with the yield on ten-year US Treasury bonds falling by 1 basis point to 3.99 percent. The market has been pricing in a 25 basis point interest rate cut on Wednesday for some time now. The dollar weakened slightly, with the euro recently trading at $1.1653.

The price of gold continued to fall. The price per troy ounce fell by 0.9 percent to $3,956. One reason given by traders for this was that optimism about an easing of the US-China trade dispute is dampening demand for safe havens. Following the precious metal's dramatic rally to a record high of $4,380 at the beginning of last week, profit-taking likely continued to play a role.

Oil prices fell by a good 2 percent. Pressure was created by media reports that the OPEC+ meeting on Sunday would likely address a moderate production increase for December. However, a moderate increase is likely largely priced in, according to commodity experts at Commerzbank.

Merger in the chip sector - Nvidia joins Nokia

In the chip sector, Qorvo surged 7.0 percent and Skyworks 5.8 percent. The two chipmakers plan to merge through a stock swap and a cash component to become one of the largest suppliers of high-frequency chips for smartphones. Skyworks shareholders will own 63 percent of the new company, while Qorvo shareholders will own the remaining 37 percent.

Meanwhile, Nvidia is investing $1 billion in Finnish Nokia, taking a 2.9 percent stake. While Nokia's shares shot up by around 20 percent in Helsinki, Nvidia's share price rose by 5.0 percent after a closing rally.

PayPal gained 3.9 percent after the payment service provider again raised its outlook. PayPal also performed better than expected in the third quarter. PayPal's future collaboration with OpenAI was also well received.

Microsoft improved by 2.0 percent with the news that the for-profit arm of OpenAI completed its conversion to a non-profit corporation and reached an agreement with Microsoft under which the software giant will take a 27 percent stake in the AI company.

Amazon rose 1.0 percent. The retail and technology group is cutting 14,000 jobs and has announced further rounds of layoffs. Reports of this kind had already circulated the previous day.

Dow-listed Sherwin-Williams rose 5.5 percent. The manufacturer and supplier of paints and coatings increased its net profit more than expected.

Although UPS reported declining profits and revenues in the third quarter, it still exceeded expectations. The share price jumped 8.0 percent.

SoFi Technologies shares rose 5.5 percent. The fintech company reported unexpectedly strong results and also raised its outlook for the second time this year.

Royal Caribbean Group shares fell 8.5 percent. While the cruise company exceeded earnings expectations and raised its forecast, analysts had expected even higher results, according to traders.

Wayfair jumped 23.9 percent after the furniture retailer reported third-quarter profits and sales that exceeded analysts' forecasts. DR Horton fell 3.3 percent. The homebuilder missed earnings expectations in the reported quarter.

 INDEX last +/- % absolute +/- % YTD
DJIA 47,706.37 +0.3% 161.78 +11.8%
S&P 500 6,890.89 +0.2% 15.73 +16.9%
NASDAQ Comp 23,827.49 +0.8% 190.04 +22.4%
NASDAQ 100 26,012.16 +0.7% 190.61 +22.9%


FOREIGN CURRENCY last +/- % 0:00 Tue, 18:56 % YTD
EUR/USD 1.1653 +0.0% 1.1650 1.1664 +12.5%
EUR/JPY 177.21 -0.4% 177.96 177.47 +9.2%
EUR/CHF 0.9246 -0.2% 0.9260 0.9252 -1.3%
EUR/GBP 0.8779 +0.5% 0.8733 0.8785 +5.5%
USD/JPY 152.08 -0.4% 152.75 152.16 -2.9%
GBP/USD 1.3274 -0.5% 1.3339 1.3277 +6.6%
USD/CNY 7.0826 -0.1% 7.0869 7.0813 -1.7%
USD/CNH 7.0952 -0.2% 7.1087 7.0938 -3.1%
AUS/USD 0.6585 +0.4% 0.6559 0.6589 +6.0%
Bitcoin/USD 113,239.55 -0.7% 114,089.70 115,376.10 +20.7%

Crude oil last VT settlement. +/- % +/- USD % YTD
WTI/Nymex 59.91 61.31 -2.3% -1.40 -14.1%
Brent/ICE 64.16 65.62 -2.2% -1.46 -12.2%


METALS last day +/- % +/- USD % YTD
Gold 3,955.88 3,990.07 -0.9% -34.19 +52.1%
Silver 47.07 46.89 +0.4% 0.18 +62.5%
Platinum 1,366.86 1,364.79 +0.2% 2.07 +55.9%
Copper 5.17 5.17 -0.0% 0.00 +25.8%
YTD based on the previous day's closing price
(Information provided without guarantee)

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DJG/DJN/gos

(END) Dow Jones Newswires

October 28, 2025 4:18 p.m. ET (8:18 p.m. GMT)

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