Major United States benchmark averages finished mixed on Wednesday (Thursday AEDT), as upbeat earnings from Bank of America and Morgan Stanley helped counterbalance ongoing concerns about the U.S.-China trade dispute and a prolonged government shutdown.
The Dow Jones Industrial Average ended little changed, dipping 17.2 points, or 0.04%, to 46,253.3. The S&P 500 rose 26.8 points, or 0.4%, to 6,671.1, while the Nasdaq Composite advanced 148.4 points, or 0.7%, to 22,670.1.
Market sentiment was buoyed early in the session after Bank of America and Morgan Stanley both reported blockbuster quarterly results, reinforcing optimism over the start of the earnings season. Bank of America’s shares closed 4.4% higher, while Morgan Stanley’s gained 4.7%.
The rebound followed Tuesday’s choppy session, when President Donald Trump rattled markets by threatening China with a cooking oil embargo in retaliation for Beijing’s refusal to purchase U.S. soybeans.
Trump also threatened to impose an additional 100% tariff on Chinese imports, responding to Beijing’s newly implemented export controls on rare earth minerals.
Despite heightened trade tensions, Treasury Secretary Scott Bessent said on Wednesday that the recent market volatility had not deterred federal officials from continuing hardline negotiations with China.
Adding to the uncertainty, the U.S. government shutdown, now in its third week, has halted the release of key economic data from federal agencies, leaving investors without important indicators to guide trading decisions.
On the data front, the New York Fed manufacturing index provided a rare bright spot, coming in at 10.7 versus -1 expected, a sharp improvement from -8.7 previously.
According to the report, the headline general business conditions index posted its third positive reading in the last four months.
On the bond markets, 10-year rates were down 0.1% to 4.028% and 2-year rates lifted 0.3% to 3.497%.
