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U.S. stocks were mixed on Thursday as investors reacted to a busy day filled with big tech earnings, a Federal Reserve rate cut, and news from President Donald Trump’s meeting with Chinese President Xi Jinping.
By late morning, the Dow Jones Industrial Average was up 372 points, or 0.8%. The S&P 500 slipped 0.2%, and the tech-heavy Nasdaq Composite dropped 0.9% as investors trimmed exposure to high-growth stocks.
Trump said his meeting with Xi was “amazing” and “outstanding,” adding that a trade deal between the U.S. and China could happen soon. He noted that China will resume buying American farm goods, especially soybeans, and that Washington will cut fentanyl-related tariffs to 10%. Other tariffs, however, will stay in place at about 47%. He also said he plans to visit China in April.
Meanwhile, the Federal Reserve cut interest rates by 25 basis points to a range of 3.75% to 4.00%, its second consecutive reduction. But Fed Chair Jerome Powell signaled uncertainty about future cuts, saying that policymakers are “navigating in the fog” as inflation and jobs data send mixed signals. Powell’s cautious tone cooled investor hopes for another rate cut in December. Analysts at ING still believe more easing will be needed to support growth next year.
Tech stocks were a major focus. Shares of Meta Platforms fell after the company said it plans to spend heavily on artificial intelligence development, which worried investors about rising costs. Alphabet’s revenue and profits both jumped sharply, boosted by its strong cloud and ad business. Microsoft also reported strong results and said it is expanding its data centers to meet high demand for cloud and AI services. Amazon and Apple are set to report later in the day.
Outside tech, several major companies reported upbeat results. Restaurant Brands, the owner of Burger King and Tim Hortons, rose after posting stronger-than-expected sales. Eli Lilly gained after lifting its full-year revenue forecast, thanks to booming demand for its weight-loss drug Zepbound. Estee Lauder jumped after beating sales and profit expectations, helped by improving demand in China. On the downside, Biogen shares fell even though it beat earnings estimates, as it cut its full-year profit outlook.
In commodities, oil prices edged lower despite improving U.S.-China trade sentiment. Brent crude slipped to $63.78 a barrel, while West Texas Intermediate fell to $59.94. Both are on track for losses of more than 3% in October, marking a third straight month of declines. Traders are now watching next week’s OPEC+ meeting, where the group may announce another modest supply increase for December.
Overall, markets are in a wait-and-see mode as investors digest the Fed’s cautious stance, Trump’s trade comments, and mixed signals from the world’s biggest tech companies.