PayPal and UPS help lead US stocks to more records
[October 29, 2025] By
STAN CHOE
NEW YORK (AP) — The U.S. stock market pushed further into record heights
on Tuesday.
The S&P 500 added 0.2%. The Dow Jones Industrial Average rose 161
points, or 0.3%, and the Nasdaq composite climbed 0.8%. All three
indexes set all-time highs for a third straight day.
Moves were also relatively modest in the bond market as Wall Street
waits for a few events that could shake things up. On Wednesday, the
Federal Reserve will announce its latest move on interest rates, while
some of the stock market’s most influential companies will report how
much profit they made during the summer. On Thursday, President Donald
Trump will meet China’s leader, Xi Jinping, in hopes of smoothing
tensions between the world’s two largest economies.
Until then, profit reports from overnight and the morning were the main
drivers of Tuesday’s action.
United Parcel Service rallied 8% after delivering stronger profit and
revenue for the latest quarter than analysts expected. UPS also gave a
forecast for revenue in the all-important holiday shipping season that
was slightly above analysts’ expectations.
PayPal climbed 3.9% after saying it made a bigger profit during the
summer than analysts expected. It also said it plans to pay its
shareholders a dividend every three months, while announcing a deal
where internet users will be able to pay for purchases through OpenAI’s
ChatGPT.
Skyworks Solutions climbed 5.8% after saying it would merge with Qorvo
in a cash-and-stock deal where Skyworks shareholders will own roughly
63% of the combined company, valued at $22 billion. Qorvo’s stock rose
nearly as much, 5.7%.
Microsoft was one of the strongest forces lifting the market after
rising 2%. That sent the company's total value on Wall Street above $4
trillion.
On the losing end of Wall Street was Royal Caribbean, which lost 8.5%
despite reporting a stronger profit than analysts expected. Its revenue
for the latest quarter fell short of expectations. The cruise operator
also said it’s seen a “minimal” hit to its business this quarter because
of bad weather, along with the temporary closure of one of its exclusive
destinations in Haiti.
Homebuilder D.R. Horton sank 3.2% after reporting a weaker profit for
the summer than analysts expected. Executive Chairman David Auld said
his company is still dealing with homebuyers finding it challenging to
afford a house, along with cautious consumer sentiment. He said D.R.
Horton will likely have to keep offering incentives in the upcoming
fiscal year to attract buyers.
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A person loots at an electronic stock board showing Japan's Nikkei
index at a securities firm Monday, Oct. 27, 2025, in Tokyo. (AP
Photo/Eugene Hoshiko)
 Amazon, meanwhile, rose 1% after
saying it will cut about 14,000 corporate jobs, or about 4% of its
corporate workforce, as it ramps up spending on artificial
intelligence while cutting costs elsewhere.
A slowing job market is one of the main reasons Wall Street expects
the Fed to announce another cut to interest rates on Wednesday. It
would be the second time this year that it’s lowered the federal
funds rate in hopes of helping the job market.
The widespread expectation is that the Fed will also cut rates for a
third time at its final meeting of the year. A lot is riding on
that, in part because U.S. stock prices have already rallied to
records on expectations for it. That means the most important part
of Wednesday’s announcement for Wall Street will be whether Fed
Chair Jerome Powell gives any hints about upcoming moves.
Fed officials have indicated that they’re likely to keep cutting
interest rates next year, but they may have to change course if
inflation accelerates beyond its still-high level. That’s because
low interest rates can make inflation worse.
In the bond market, the yield on the 10-year Treasury eased to 3.97%
from 4.01% late Monday. A report showing confidence among U.S.
consumers is a smidgen better than economists expected had little
effect on the market.
On Wall Street, the S&P 500 rose 15.73 points to 6,890.89. The Dow
Jones Industrial Average climbed 161.78 to 47,706.37, and the Nasdaq
composite gained 190.04 to 23,827.49.
In stock markets abroad, indexes were mixed in Europe following
modest losses in Asia.
Japan’s Nikkei 225 fell 0.6% from its record high. South Korea’s
Kospi sank 0.8% for another one of the world’s larger moves.
Some of the strongest action in financial markets was again for the
price of gold. It’s been struggling after an astonishing run this
year, setting records and nearly reaching $4,400 per ounce last
week. It’s since dropped back below $4,000 per ounce, and its gain
for the year so far has trimmed to roughly 50%.
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
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