Stocks Split as Small Caps Rally; Tech Slips While Gold Climbs

U.S. stocks finished mixed Tuesday, with small caps surging even as big tech shares lagged. The Dow industrials rose 203.66 points, or 0.44%, to 46,271.2, while the S&P 500 slipped 0.16% to 6,644.38. The Nasdaq Composite fell 0.76% to 22,521.7, but the Russell 2000 jumped 1.41% to 247.86, signaling renewed risk appetite down the market-cap spectrum, according to index dashboards provided.

The crosscurrents followed a dovish turn from the Federal Reserve. In an Oct. 14 address, Fed Chair Jerome Powell emphasized growing employment risks and indicated the central bank is “approaching the end” of its balance-sheet runoff, a shift that has investors leaning toward easier policy by year-end. Futures markets put 97% odds on a 25-basis-point rate cut this month, per CME FedWatch, as summarized in the Article Build. Powell also said, “There is no risk-free path for monetary policy,” and warned that “The labor market has demonstrated significant downside risk.” He framed recent price pressure as largely tariff-related, noting core PCE at 2.9%, and described the current backdrop as “low-hire, low-fire,” underscoring the trade-off now tilting toward employment support.

Lower-rate hopes aided economically sensitive shares: the small-cap Russell 2000 outperformed, while the tech-heavy Nasdaq slipped as investors rotated within equities. Commodities painted a cautious macro picture: gold rose 0.54% to $4,155.40, consistent with demand for hedges, while U.S. crude fell 1.80% to $58.42, pointing to softer growth expectations and easing energy-cost pressure.

Earnings also colored the tape. Big banks delivered resilient third-quarter results with fee income up 25–40%, offsetting slower net interest income as the rate tailwind fades. Wells Fargo and Citigroup shares outperformed on “clean” results and visible turnaround progress, while JPMorgan and Goldman Sachs saw sell-the-news pullbacks despite strong top lines—evidence investors are rewarding stability over perfection as the cycle matures, according to the Article Build. Credit metrics remained orderly, with managements describing consumer health as durable, even as margins compress.

Taken together, Tuesday’s action reflected markets adjusting to a Fed that is pivoting from restriction to stabilization and to an earnings season where fee growth and expense control matter more than further rate leverage. If Powell’s balance-sheet signal sticks and labor data continue to cool without an inflation flare-up, leadership may broaden beyond mega-cap tech—just what the Russell’s advance implied.