The major averages reversed course and finished in the green as President Trump marked an optimistic tone on trade relations with China even as some investors are concerned about credit issues at some regional banks. The Dow Jones Industrial Average
finished up 238 points, or 0.52% at 46,190. The S&P 500 rose 34 points or 0.5% at 6,664 while the Nasdaq Composite added 117 points or 0.5% to 22,679.
On the week, the S&P 500 rose 1.7%, the Dow rose 1.7% while the Nasdaq rose 2.2%.
Stocks extended their gains in afternoon as Treasury Secretary Scott Bessent said he would be speaking with his Chinese trade counterpart Friday evening. Trump also said at the White House that a meeting with China President Xi Jinping was still likely before month end. Currently, President Trump is threating 100% additional tariffs against China in November.
The financials were in the spotlight again led by American Express up 5% today. The large cap banks had a good week following strong earnings from Bank of America, Wells Fargo and others. The regional banks like Zions and Western Alliance took a hit the other day on concerns of bad credit, however, both stocks rebounded today. Another regional banks, Fifth Third Bancorp was higher on better than expected earnings also assuaging worries today. The SPDR S&P Regional Banking ETF fell 6% yesterday, but rebounded 1.5% today.
Interest rates rebounded as investors’ jitters over a potential credit crisis in the banking sector eased along with the VIX index. The 10-year Treasury yield rose 3 basis points to 4.0%. The 2-year Treasury note rose more than 3 basis points to 3.46%. The 30-year bond yield ticked up nearly 2 basis points to 4.60%.
In the commodity space, oil was modestly higher as Trump and Putin agreed on an other summit but down on the week near a six month. Gold was modestly lower today, but made news highs earlier in the day and rose nearly 5% on the week. Crypto currencies took a hit this week down over 5% and down 14% in the last two weeks.
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