04:57 PM EDT, 10/15/2025 (MT Newswires) -- US equites ended a choppy session mostly higher on Wednesday as banks' stellar results took center stage, while the Federal Reserve's Beige Book reinforced bets on another interest rate cut later this month.

The Nasdaq Composite rose 0.7% to 22,670.1, while the S&P 500 climbed 0.4% to 6,671.1. The Dow Jones Industrial Average finished just below the flatline at 46,253.3 after two straight days of gains. Among sectors, materials and industrials saw the biggest drop, while real estate paced the gainers.

In company news, Morgan Stanley's ( MS ) third-quarter results topped market estimates as the lender recorded double-digit revenue gains in its investment banking and equity trading businesses. The company's shares rose 4.7%.

Bank of America ( BAC ) reported stronger-than-expected third-quarter results, buoyed by investment banking and asset management fees. The stock advanced 4.4%.

The results followed stronger-than-expected financials reported by Citigroup ( C ) , JPMorgan (JPM), Goldman Sachs (GS) and Wells Fargo ( WFC ) on Tuesday.

Progressive's (PGR) third-quarter profit rose less than Wall Street's expectations, while the insurance company's combined ratio deteriorated. The company's shares declined 5.8%, the second-steepest decline on the S&P 500.

Hillenbrand's ( HI ) shares surged 18% after the industrial equipment supplier agreed to be acquired and taken private by Lone Star Funds, for an enterprise value of about $3.8 billion.

US economic activity was little changed since early September as prices increased further, while labor demand was "generally muted," the Fed said in its latest Beige Book released Wednesday.

Most districts saw more employers reducing headcounts via attrition and layoffs amid weaker demand and high economic uncertainty, the document showed. "Labor supply in the hospitality, agriculture, construction, and manufacturing sectors was reportedly strained in several districts due to recent changes to immigration policies," according to the Beige Book.

The Beige Book follows Fed Chair Jerome Powell's remarks on Tuesday that downside risks to employment seemed to have increased in a "somewhat softer" labor market.

"Sufficient signs of softness in the Beige Book, notably for employment, should spur the Fed to pull the easing trigger again on (Oct. 29)," Sal Guatieri, senior economist at BMO Capital Markets, said in a report published on Wednesday.

Traders continued to monitor developments on trade front. US Treasury Secretary Scott Bessent told CNBC on Wednesday that recent volatility in the stock market will not prompt Washington to change its trade stance on China.

Separately, Bessent told CNBC that the US will set price floors "across a range of industries" to tackle alleged market manipulation by China.

A deadlock in trade negotiations between the US and China poses new risks to the economic outlook and makes the case for further monetary policy easing even more urgent, CNBC reported, citing Federal Reserve Governor Stephen Miran.

On Tuesday, Trump threatened to discontinue US purchases of cooking oil from China. The US could impose additional tariffs of 100% on Chinese goods, depending on how Beijing handles a dispute around rare earths, CNBC reported, citing US Trade Representative Jamieson Greer.

"Just when much of the investing public had pushed the tariff issue to the back burner, we received a harsh reminder that the (US) and China, the two biggest economies in the world by far, had yet to really nail down a solid trade deal that markets could count on going forward," Wells Fargo Investment Institute said in a Wednesday client note. "Financial markets are clearly sensitive to the ebb and flow of US and Chinese tariff standoffs and negotiations."

US Treasury yields edged higher, with the two-year rate gaining 1.7 basis points to 3.51% and the 10-year rate ticking up 0.2 basis point to 4.04%.

West Texas Intermediate crude oil slipped 0.1% to $58.64 a barrel in Wednesday late-afternoon trade.

Meanwhile, a US federal government shutdown dragged on. The Senate was expected to vote on the GOP government funding proposal Wednesday, CNN reported. On Tuesday, Democrats once again blocked a funding proposal over a dispute regarding health care and spending priorities, according to the report.

Gold was up 1.5% at $4,223.60 per troy ounce, while silver gained 3.7% to $52.48 per ounce.