US stocks experienced a notable uptick on Friday, with President Trump’s reassurances regarding trade negotiations with China helping to quell investor fears of an escalating trade dispute. The Dow Jones Industrial Average climbed over 0.8%, while the S&P 500 and the tech-heavy Nasdaq Composite saw gains of about 0.7%.
Trump communicated that discussions with China were progressing positively and confirmed that his meeting with Chinese President Xi Jinping would proceed as planned. These comments followed earlier statements where Trump suggested that the threatened increase of 100% tariffs on Chinese goods effective November 1 was not a “sustainable” strategy for either nation’s economy.
As regional bank stocks began to recover from a significant sell-off earlier in the week, a slew of positive earnings reports surfaced from lenders such as Truist Financial Corp., Huntington Bancshares, and Fifth Third Bancorp. This improvement followed heightened concerns after two regional banks disclosed issues with loans linked to fraud, which sparked significant anxiety among investors about the overall credit quality in the US. The KBW Nasdaq Regional Banking Index rose over 1.5%, rebounding after a staggering 6% drop on Thursday—the worst single-day decline since the tariff disputes began in April.
The financial sector faced headwinds throughout the week, compounded by concerns over a prolonged federal government shutdown, now among the longest in history. The impasse has left federal workers without pay and has raised fears that the shutdown could extend into November and even beyond Thanksgiving.
In the broader commodities space, oil prices tweeted downward, positioning for a third consecutive week of declines amid increasing worries over oversupply. West Texas Intermediate fell below $57 per barrel, while Brent futures hovered around $61—the lowest figures since May. Factors contributing to this trend include the ongoing US-China tariff disputes and recent de-escalations in the Middle East, which may open additional oil supplies.
In company-specific news, Oracle’s stock plummeted over 7% following confirmation from American Airlines’ regional carrier, Envoy Air, that its applications were part of targeted hacks leading to extortion attempts. This decline marked a stark contrast to Oracle’s previous gains fueled by a positive outlook regarding AI infrastructure profitability.
In contrast, gold prices soared to their highest levels in years as concerns about declining credit quality raised its appeal as a safe-haven asset, amidst speculation about ongoing Federal Reserve monetary easing and deteriorating Sino-American relations.
Tech stocks exhibited mixed results as the week drew to a close. Nvidia, despite an analyst upgrade, was on track for a slight loss, while Alphabet projected gains following recent changes that could enhance its advertising revenue. Meanwhile, Tesla prepared to report quarterly results, anticipating a 5% increase.
In the bond market, Treasury yields rebounded as concerns about credit eased, raising the 10-year yield above 4% after it had dropped notably the previous day. Reports indicated that initial unemployment claims fell last week, hinting at a tightening labor market, amidst a backdrop of wavering investor confidence regarding upcoming Federal Reserve rate decisions.
Overall, Friday’s market movements reflected a recovery from earlier turbulence, driven chiefly by reassurances from the White House and encouraging earnings reports, even as the broader economic landscape remained clouded by uncertainty.
