Stock market today: Dow, S&P 500, Nasdaq climb as strong bank earnings, rate-cut hopes soothe US-China jitters

Market Overview - US stocks experienced an increase on Wednesday, driven by optimism regarding potential interest rate cuts and strong earnings reports from major banks [1][2] - The Dow Jones Industrial Average rose approximately 0.4%, while the S&P 500 and Nasdaq Composite gained about 0.7% and 1%, respectively [1] Earnings Season - The earnings season has started positively, with Bank of America reporting a 23% increase in profit, benefiting from a surge in major deals on Wall Street [2] - Morgan Stanley's profits surged by 45%, with the CEO describing the quarter as "outstanding" [2] - Other companies like PNC Financial and Abbott Laboratories also reported favorable results, contributing to market optimism [3] Federal Reserve Insights - Comments from Federal Reserve Chair Jerome Powell indicated rising "downside risks to employment," suggesting that more interest rate cuts may be forthcoming [4] - Investors are increasingly betting on a rate cut later this month, with the likelihood of a December rate cut rising to around 95% [4] US-China Trade Tensions - Ongoing US-China trade tensions remain a concern, with President Trump considering an embargo on cooking oil from China in response to its reduction in US soybean purchases [5] - China's recent sanctions on US subsidiaries of South Korean shipbuilder Hanwha have further escalated tensions [5] Government Shutdown Implications - The Trump administration is preparing for a prolonged government shutdown, with expected cuts to federal programs and efforts to secure funding for military and law enforcement [6]