Overview
The stock market fluctuated significantly amid tensions from U.S.-China trade conflicts and the onset of the third-quarter earnings season. The S&P 500 index rebounded from intraday lows but surrendered most gains due to renewed trade concerns, closing lower.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News
The market opened lower as China announced retaliatory measures against several U.S. enterprises. However, optimism arose in the afternoon following comments from a U.S. trade representative on CNBC suggesting that talks between President Trump and President Xi Jinping would proceed as planned. This led to hopes for a potential agreement. Nevertheless, a late-session tweet from President Trump about halting edible oil trade with China reignited tensions, causing the market to fall again. Additionally, Powell's speech indicated the Fed's unchanged outlook on employment and inflation, hinting at potential rate cuts.
Wells Fargo and Citigroup reported positive earnings, leading to their stock prices rising, while JPMorgan and Goldman Sachs saw declines despite good earnings, due to concerns over high valuations and trade tensions.
Tomorrow's Economic Indicators
| Announcement Time | Indicator Description |
|---|---|
| 8:00 PM | U.S. MBA Mortgage Applications |
| 11:30 PM | U.S. EIA Crude Oil Inventories |
| 11:30 PM | Fed Governor Bowman Speech |
| 11:30 PM | Fed Governor Waller Speech |
| 11:30 PM | Fed President Kashkari Speech |
General Opinion
The increased market volatility due to heightened U.S.-China trade tensions and Powell's interest rate cut hint has some experts concerned about the sustainability of high valuations. Observers caution that further escalations by the Trump administration could strain current valuations and impact market resilience.
