Stocks Rebound as Trump Eases Trade Jitters, Regional Banks Recover – US Market Wrap
A jittery week on Wall Street ended on an upbeat note, with stocks climbing as President Donald Trump’s remarks eased trade tensions and regional banks staged a rebound. Bonds, gold and silver fell as risk appetite returned.
The rebound lifted the S&P 500 to its best week since August, after Trump voiced optimism that talks with Chinese officials could yield an agreement to defuse the tariff dispute between the world’s two largest economies. A series of solid earnings from regional lenders also buoyed sentiment following a rout sparked by concerns over credit quality in the banking sector.
The White House sought to calm fears of a full-blown trade war that could disrupt global growth. “I think we’re doing very well. I think we’re getting along with China,” Trump said, adding that his planned meeting with President Xi Jinping later this month was still on track.
The S&P 500 advanced 0.5%, while an ETF tracking regional banks rose 1.6%. Zions Bancorp and Western Alliance Bancorp — both at the center of this week’s selloff — rallied at least 3.1%. Oracle Corp. dropped about 7% on renewed concerns about meeting AI cloud demand. Two-year Treasury yields climbed from their lowest levels since 2022, and the dollar ended little changed after its worst week since August.
Regional bank executives moved swiftly to reassure investors on Friday, following Thursday’s plunge triggered by fraud-related loan charge-offs. Several lenders reported third-quarter results showing lower provisions for loan losses than analysts had expected.
Despite the week’s turmoil — from banking stress to trade uncertainty — investors poured money back into equities. According to Bank of America Corp., citing EPFR Global data, equity funds drew $28.1 billion in inflows for the week ended Oct. 15, while cash funds saw $24.6 billion in outflows.
Meanwhile, the ongoing US government shutdown has frozen the release of key economic data, forcing analysts to rely on alternative sources. One such measure showed applications for unemployment benefits fell last week, based on unadjusted state-level filings compiled during the data blackout.
