United States stocks ended Tuesday’s (Wednesday AEDT) volatile session mixed, as upbeat quarterly earnings from major banks were offset by renewed tensions between Washington and Beijing following another round of sharp criticism from President Donald Trump.
The Dow Jones Industrial Average rose 202.9 points, or 0.4%, to 46,270.5. The S&P 500 slipped 10.4 points, or 0.2%, to 6,644.3, while the Nasdaq Composite fell 172.9 points, or 0.8%, to 22,521.7.
Markets opened lower after China announced sanctions on five U.S. subsidiaries of South Korea’s Hanwha Ocean, citing national security concerns.
The sanctions prohibit Chinese firms and individuals from doing business with the targeted entities, further straining the fragile trade relationship with the United States.
Despite geopolitical turbulence, a raft of major lenders posted robust third-quarter results, led by Wells Fargo, which surged 7.2%, its biggest one-day gain since November 2024, after reporting stronger investment banking income.
Citigroup also jumped 3.9% after beating profit forecasts.
JPMorgan Chase lifted its full-year net interest income guidance, and Goldman Sachs topped Wall Street estimates for quarterly profit. However, both stocks fell around 2% as investors took profits following recent gains.
BlackRock shares advanced 3.4% after the asset manager reported record assets under management of US$13.46 trillion.
Elsewhere, Federal Reserve Chair Jerome Powell offered a measured outlook on the economy, noting that the U.S. labour market remained in its low-hiring, low-firing doldrums but that overall growth “may be on a somewhat firmer trajectory than expected”.
Volatility crept higher, with the Cboe Volatility Index, Wall Street’s “fear gauge”, briefly topping 22, its highest level in four months, before closing at 20.81.
On the bond markets, yields eased as traders sought safety in government debt. The 10-year Treasury yield declined 0.7% to 4.032%, while the 2-year yield fell 1.3% to 3.485%.
