Positive Earnings and Rate Cut Expectations Support Market Levels at New Record Highs

Barry Adams
28 Oct, 2025
New York City

Wall Street indexes lacked direction, and investors awaited release of key earnings results from mega-cap tech companies. 

The S&P 500 index edged up 0.01%, and the tech-heavy Nasdaq Composite edged down 0.01% ahead of earnings results from Amazon.com, Apple, Microsoft, Meta Platforms, and Alphabet. 

Benchmark indexes advanced to record highs on Monday, as investors bid up stocks following last week's positive earnings announcements from banks, brokerage houses, airlines, and aviation companies. 

Investors voiced optimism about a possible trade deal between the U.S. and China, as negotiators signaled progress in resolving differences. 

However, the market's optimism may be misplaced, as China's trade negotiators lowered expectations because of unresolved issues related to advanced technology products and steep tariffs on China's goods. 

Gold extended its one-week losses to 10%, and the futures price dropped to a two-week low as speculators unwind leveraged trades amid receding US-China trade tensions.  

 

U.S. Stock Movers 

NXP Semiconductors increased 2% to $226.0, and the Dutch manufacturer reported better-than-expected third-quarter results. 

Revenue decreased 2% to $3.2 billion from $3.25 billion. Net income decreased 12% to $631 million from $745 million, and diluted earnings per share dropped 11% to $2.48 from $2.79 a year ago. 

The company's fourth-quarter guidance surpassed market expectations. 

Revenue in the fourth quarter is estimated to range between $3.2 billion and $3.4 billion, operating income between $878 million and $1.0 billion, and diluted earnings per share to fall between $2.40 and $2.81. 

Cadence Design Systems decreased 1.4% to $346.50, and the software company lifted its full-year outlook. 

Revenue increased to $1.3 billion from $1.2 billion, net income advanced to $287.1 million from $238.1 million, and diluted earnings per share rose to $1.05 from 87 cents a year ago. 

The company said the backlog at the end of the quarter increased to $7.0 billion, and revenue expected to be recognized in the next 12 months from remaining performance obligations was $3.5 billion.

Cadence estimated full-year revenue to range between $5.26 billion and $5.29 billion, and diluted net income per share to fall between $3.80 and $3.86. 

Chegg Inc. decreased to $1.40 after the company announced it would lay off 45% of its corporate staff, and the former chief executive Dan Rosensweig returned effective October 27, replacing the current CEO Nathan Schulz.

Amazon.com Inc. rose 0.4% to $228.0, and the company plans to lay off as many as 30,000 from its corporate ranks as the e-commerce company accelerates its AI investment. 

F5 Inc. dropped 7.7% to $267.53, and the cybersecurity company's guidance fell short of market expectations. 

Revenue in the fiscal fourth quarter increased 8% to $810 million from $747 million, net income advanced 15% to $190 million from $165 million, and diluted earnings per share rose to $3.26 from $2.80 a year ago. 

Systems revenue jumped 42% to $186 million, software revenue inched up 0.3% to $229 million, and global services advanced 2% to $396 million from a year ago, respectively.