Wall Street experienced a decline on October 31, 2025, as the latest earnings season for major U.S. companies began with mixed results. The S&P 500 fell by 0.4%, while the Dow Jones Industrial Average dropped 399 points, equating to 0.8%. The Nasdaq Composite also saw a decrease of 0.2%. This downturn comes after both the S&P 500 and the Dow had recently reached all-time highs, raising expectations for solid profit growth in the third quarter.
Investors were particularly focused on the performance of JPMorgan Chase and Delta Air Lines, which set the tone for the earnings season. JPMorgan reported profits and revenues that fell short of analysts’ expectations, leading to a 3.8% decline in its stock price. The disappointment was partly attributed to unadjusted estimates related to the bank’s acquisition of the Apple Card credit card portfolio. CEO Jamie Dimon provided an optimistic outlook on the U.S. economy, noting that “consumers continue to spend, and businesses generally remain healthy.”
Delta Air Lines also faced challenges, with its shares dropping 3.3% despite reporting better-than-expected profits for the third quarter. The airline’s revenue did not meet Wall Street forecasts, and its profit projections for 2026 fell short of expectations. Meanwhile, Chipotle Mexican Grill experienced a 3.8% dip after announcing the search for a new chief marketing officer, a move that took analysts by surprise.
Healthcare Stocks Surge Amid Earnings Reports
On a more positive note, several healthcare companies saw gains following optimistic updates. Moderna surged by 13.1%, marking the largest increase in the S&P 500, after the company projected revenue for 2025 that exceeds its previous forecast. Moderna also provided updates on its product pipeline, including a seasonal flu vaccine anticipated for potential approval later this year. Revvity also reported a 2.4% increase after projecting profits above previous estimates, alongside a positive revenue forecast for the fourth quarter.
In a separate development, L3Harris Technologies gained 0.4% after announcing plans to separate its Missile Solutions business into an independent company through an initial public offering. The U.S. government has agreed to invest $1 billion in the venture, which will convert into common stock during the IPO. L3Harris intends to maintain a controlling interest in the newly formed company.
Bond Market and Inflation Update
In the bond market, yields remained steady following the release of an inflation report that closely aligned with expectations. The data suggested that the Federal Reserve may have the opportunity to lower its main interest rate at least twice in 2026 to support job growth. Lower interest rates could potentially reduce borrowing costs for households and enhance investment prices, although they also pose a risk of exacerbating inflation.
The inflation report indicated that U.S. consumers faced an overall price increase of 2.7% compared to a year earlier, slightly exceeding economists’ expectations and above the Fed’s 2% inflation target. Despite this, an underlying inflation trend showed more encouraging results than anticipated, providing the Fed with possible leeway for rate reductions in the future. As noted by Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management, “We’ve seen this movie before—inflation isn’t reheating, but it remains above target.”
In the international markets, stock indexes displayed mixed results. Japan’s Nikkei 225 surged by 3.1%, driven by gains in technology stocks. Investors are optimistic following the recent election of Prime Minister Sanae Takaichi, who is expected to leverage her popularity to strengthen her mandate for increased government spending.
As earnings season progresses, investors will be closely monitoring financial reports from other large corporations to gauge economic performance and market stability.
