By Heard Editors
What Happened in Markets Today:
Small-cap stocks rallied as Federal Reserve Chair Jerome Powell made comments that buttressed expectations that more interest-rate cuts are coming. Speaking at a conference, Powell suggested that an interest-rate reduction is likely this month due to job-market weakness, despite inflation concerns. Also on Tuesday, USTR Jamieson Greer said on CNBC that President Trump and Xi Jinping are set to meet, dispelling some concern on that front. The Russell 2000 advanced 1.4% and the Dow gained 0.5%. The Nasdaq declined 0.8% while the S&P 500 fell 0.2%.
Powell also hinted the central bank could be ready to end the shrinking of its balance sheet. The Fed has been on a three-year campaign to shrink a portfolio of Treasury securities that it acquired to provide stimulus after the 2020 pandemic upended the economy. It has been passively reducing its $6.6 trillion asset portfolio since mid-2022, when those holdings peaked at nearly $9 trillion as part of an extraordinary effort to support financial markets and the economy.
Goldman Sachs, JPMorgan Chase and Wells Fargo posted better-than-expected results, while BlackRock's assets under management topped $13 trillion for the first time**.** Dealmaking, trading and corporate lending are gaining steam and fueling profits at the nation's biggest banks. Goldman is now on pace for its best year ever in its main investment-banking and markets division. JPMorgan is on track to make over $50 billion in annual profit for the second year in a row.
Walmart shares advanced nearly 5% after it said it is forming a partnership with OpenAI to let shoppers buy its products directly within ChatGPT. Within the next few months, U.S.-based ChatGPT users will be able to instantly buy Walmart products directly in ChatGPT. The products will include nearly everything available on Walmart's website, except for fresh food. And Walmart+ members will still get their benefits such as free shipping when making purchases through ChatGPT.
Argentina's stock market took a hit Tuesday after President Trump made clear that his administration's support for the struggling South American nation is contingent on an election victory two weeks from now by the party of his preferred candidate, right-leaning President Javier Milei. The S&P Merval index of Argentina's major stocks was down 3% Tuesday after Trump said of the Oct. 26 election, "If he loses, we will not be generous with Argentina."
This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.
This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).
(END) Dow Jones Newswires
October 14, 2025 17:00 ET (21:00 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.