Stock Market Summary – October 30, 2025

Jerome Powell, chairman of the US Federal Reserve, faces a contentious policymaking atmosphere leading up to another potential interest rate cut in December. Despite being anticipated, the October cut has sparked divisions among Federal Reserve policymakers. Wall Street economists and strategists see this circumstance as a pivotal moment for Powell as his term ends in May. The markets reacted ambiguously towards the division with traders maintaining a 75% probability of a cut in December.

The stock market saw significant movements based on earnings reports. The S&P 500 and Nasdaq both faced a slump as Meta Platforms and Microsoft stocks dropped by 10% and 3%, respectively, due to post-earnings worries about increased forecasts on AI spending. Solstice Advanced Materials, a Honeywell spin-off, began trading on the Nasdaq, with shares rising nearly 6%. Stocks for Meta, Microsoft, Carvana, Chipotle Mexican Grill, and eBay all slipped, while Cardinal Health, Bristol-Myers Squibb, and FormFactor saw gains.

The actions of the Federal Reserve have also affected the mortgage market, with the average rate on a 30-year fixed mortgage jumping 20 basis points following the recent cut. Regarding other economic occurrences, Hurricane Melissa’s landfall in Jamaica is expected to trigger a full payout from a $150 million catastrophe bond designed to provide funds for rebuilding after natural disasters.

In the auto industry, companies are facing potential disruption due to a possible shortage of automotive semiconductor chips. Automaker Honda became the first known company to reduce production due to the crisis, which involves chips from Netherlands supplier Nexperia. Companies are establishing “war rooms” to monitor the situation and attempt to find alternative sources.

Shares of health insurance company Cigna saw a slump, but Cardinal Health climbed 12% following a better-than-expected fiscal first-quarter results. CVS dropped over 4% on negative forecasts for its Medicaid state business. Meanwhile, Bristol Myers Squibb stocks saw an uptick with growth of 5% after surprisingly good third-quarter results.

Finally, investors are eagerly awaiting the fourth-quarter earnings report from Apple. The report is expected to include early signs of improved demand for the new iPhone 17 models, as well as the impacts of Trump administration tariffs on the tech giant.